Buying into the LEAPs before we sell the near month calls allows us to “leg in” to the position in order to maximize our profits. “Legging in” subjects us to more risk in the beginning but the rewards are much greater if we sell the near month calls at a higher price.
If you feel that you’d rather not take so much risk in the beginning, then it is okay to sell the June 145 calls right after you buy the leaps. You should be able to sell the June 145 Calls for about $2.15. Doing this will immediately lower the cost basis for the leaps, giving you more of a cushion to the downside.
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