Selection Criteria for Call Option Stock replacement (SR) vs Purchasing stock shares outright


I'm looking to refine my investing strategy and am looking at stock replacement with calls vs purchasing stocks. Right now, I'm thinking the following for SR:

  • growth orientated (more dramatic movement expected)
  • less than 2% dividend
  • buy with delta around .8+, depending on volume and spread
  • 6-9 months left and reevaluate at ~2-3 months
  • I will also likely do a covered call-like strategy, selling monthly calls at .1 delta

All thoughts welcome.

BTW, not my first foray into options. I have been investing, in general, for about 20 years and have dabbled in options for about 4.


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