There's a company I'm bullish on for the long-term. It's already a major part of my portfolio, but I'm looking to gain additional exposure through options.
While I have faith in them regardless, I feel like the whole AI phenomenon/craze is going to be a catalyst for their stock to rise. I also expect it to take couple-few quarters to pan out.
I already have a position in moderately OTM calls for 6/2024. I'm considering a sort of “hedge” in the form of additional long-term calls that are a bit more conservative. When comparing the options available, I started to ask a question that might only be answered through experience.
- Idea 1: Buy lower strike calls for the same date (6/2024).
- Idea 2: Buy similar strike calls for further out (1/2025).
The price for both is similar. I'm willing to wait for my thesis to pan out, so the additional time isn't a dealbreaker. Any thoughts?
(For the record, I think I might go with Idea 3: Buy more of the underlying. I believe in the company, and I want to hold them for years. The potential upside might be less, but I see no downside. But I still want input.)
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