mster
11-27
$ASML 20251205 1150.0 CALL$ I currently hold a long call on ASML set to expire next March. I am now establishing a short-dated (just over a week out) short call at a higher strike price, transforming the overall position into a diagonal spread, also known as a Poor Man’s Covered Call (PMCC). While my outlook is bullish for ASML in the near future, I recognize the move will not be linear. Selling this short call acts as a hedge: it captures premium to offset the theta decay on the long call, which would otherwise depreciate even if the underlying stock isn't moving fast enough. Ultimately, this is a capital-efficient method to generate short-term income against a long-term bullish outlook.
ASML CALL
11-27 00:34
US20251205 1150.0
SidePriceRealized P&L
Sell
Open
1.35--
Closed
ASML Holding NV
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Comments

  • snoozi
    11-27
    snoozi
    Smart hedge with theta decay coverage. ASML should pop soon! [吃瓜]
  • Mortimer Arthur
    11-27
    Mortimer Arthur
    If this does not go up in an AI bubble then when? Weak participation on the way up but strong participation on the way down. Buy avgo or nvda

    • mster: 
      There’re always noises out there, just need to be aware and navigate around it.
  • Jo Betsy
    11-27
    Jo Betsy
    Won’t TSMC’s 2026 capex hike send ASML past your short strike?
    • mster: 
      Thus keeping expiration short. Will roll if need be.
  • Ron Anne
    11-27
    Ron Anne
    How did you pick the 1-week expiry vs March long call?
    • mster: 
      No real math here. Just trade base more on technical and price action.
  • Phyllis Strachey
    11-27
    Phyllis Strachey
    Isn’t 7nm chip demand a linear catalyst, not choppy?
  • Megan Barnard
    11-27
    Megan Barnard
    32% IV on short calls = theta offset that’s hard to beat!
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