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+98.52%
Holding
ASML Holding NV
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Comment（11）

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  • snoozi
    ·11-27
    TOP
    Smart hedge with theta decay coverage. ASML should pop soon! [吃瓜]
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    • mster: 
      🤞
      11-28
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  • Mortimer Arthur
    ·11-27
    TOP
    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

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    • mster: 
      There’re always noises out there, just need to be aware and navigate around it.
      11-28
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  • Jo Betsy
    ·11-27
    TOP
    Won’t TSMC’s 2026 capex hike send ASML past your short strike?
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    • mster: 
      Thus keeping expiration short. Will roll if need be.
      11-28
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  • Ron Anne
    ·11-27
    TOP
    How did you pick the 1-week expiry vs March long call?
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    • mster: 
      No real math here. Just trade base more on technical and price action.
      11-28
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  • Phyllis Strachey
    ·11-27
    Isn’t 7nm chip demand a linear catalyst, not choppy?
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  • Megan Barnard
    ·11-27
    32% IV on short calls = theta offset that’s hard to beat!
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  • Wade Shaw
    ·11-27
    ASML’s 45% EUV order growth makes this PMCC’s upside juicy!
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