I just bought some more. I used expiration dates six to eight months out and am using slightly out of the money strikes on the MSFT calls I just bought here.
Here’s an answer to a recent subscriber email. More of these to come.
“have you thought about the oct calls for dba? that’s a position i’m thinking about starting.”
The problem with calls in something that’s a measure of prices of commodities like the DBA is, is that it’s very tough to pinpoint a near-term catalyst. While I do think that over the course of the next two to three years that the DBA will continue on its upward trajectory (it’s up over 50% since I originally added to the Revolution Investing portfolio), but for without earnings or some other specific catalyst for the next three months or so that your Oct DBA calls would cover…well, I’m sticking with common in the DBA for now. If I were to use DBA calls, I’d go out as far as I possibly could — much further than three months to October.