Calls
A call can provide upside exposure with defined upfront risk, but the strike price, expiration, premium, and time decay all matter.
Public Markets
A disciplined watchlist for using options to pursue better entry prices in durable businesses.
The Working Idea
Options can create flexibility around a long-term investment thesis. The initial focus here is on put strategies: identifying companies worth owning, then setting a price that creates a more attractive margin of safety.
This is a personal research framework, not a recommendation to buy or sell securities. Prices and assumptions should be refreshed before any decision.
Current Watchlist
| Company | Current Price* | My Initial Bargain Price |
Discount | 100-Share Cost at Bargain Price |
Initial View for Put Strategy** |
|---|---|---|---|---|---|
| Costco (COST) | ~$895 | $760 | 15.1% | $76,000 | Attractive business, but valuation/earnings event matters |
| Apple (AAPL) | ~$333 | $285 | 14.4% | $28,500 | Very interesting |
| JPMorgan (JPM) | ~$350 | $300 | 14.3% | $30,000 | Interesting, but bank metrics require different analysis |
| Walmart (WMT) | ~$108 | $95 | 12.0% | $9,500 | Very practical for first position |
| Coca-Cola (KO) | ~$88 | $78 | 11.2% | $7,800 | Conservative candidate |
* Current prices are approximate reference points.
** Initial views are for research and discussion only. Option premiums, expiration dates, assignment risk, liquidity, and earnings events are not included in this comparison.
Contract Planning
| Company | Approx. Price | Target "Bargain" Price |
Cash Required | Suggested Expiration Window |
What I'd Examine |
|---|---|---|---|---|---|
| COST | ~$895 | $760 | $76,000 | 30–60 days | $760 put premium, Delta, earnings exposure |
| AAPL | ~$332 | $285 | $28,500 | 30–60 days | $285 put premium, Delta, earnings exposure |
| JPM | ~$350 | $300 | $30,000 | 30–60 days | $300 put premium, Delta, earnings exposure |
| WMT | ~$108 | $95 | $9,500 | 30–60 days | $95 put premium, Delta, earnings exposure |
| KO | ~$88 | $78 | $7,800 | 30–60 days | $78 put premium, Delta, liquidity |
Cash required reflects the full 100-share obligation at the target bargain price before considering any premium received.
A call can provide upside exposure with defined upfront risk, but the strike price, expiration, premium, and time decay all matter.
A cash-secured put can pair a desired entry price with a willingness to own the shares if assigned. The obligation must be fully understood before opening a position.
The bargain price is only one input. Position sizing, concentration, business quality, and the ability to hold through volatility are equally important.
Explore the broader portfolio or get in touch to discuss a market idea.
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