Leaderboard

Hi Ken, thanks for your prompt answer. Yes, this is what I was looking for. What keeps me thinking is your remark "...that would be redundant and carries some risk". Again assuming a 100% SPY portfolio that is fully hedged with ratio diagonal calenders. What additional risk is added by selling monthly SPY OTM-Calls? I´m wondering because, assuming that the 2%-OTM-Monthly-Short-Call strategy is a profitable long-term standalone portfolio strategy, why would it add additional risks as an add-on component to an existing portfolio; maybe kind of looking at the whole portfolio as two portfolio tranches and pretending the 2%-OTM-Monthly-Short-Calls are just naked calls. Or another way to look at it: Assuming a hedged portfolio that is 100% Nikkei exposure and adding the 2%-OTM-Monthly-SPY-Short-Call strategy. Ignoring potential diversification benefits for our discussion, would you still say that this adds some risk? Thanks Honny P.S. sorry for my bumpy english, I´m not a native english speaker.