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No. of Recommendations: 1
There are a number of ways to handle this situation. I look forward to other's thoughts. I'm not sure what is better. I'd love a table of what strategy is better in what case.

I think the covered call strategy is probably a good one if you think the stock is pretty fully valued/extended.  I generally step in in parts. 1/2 position, etc.

If you think there is likely good upside from here and don't want to limit the appreciation then I might be more inclined to just buy a 1/2 position of the stock and sell  puts for the other 1/2 to lower the cost basis or potentially fill the position at a lower price.

Or, you could sell a put at a lower price to finance the purchase price of a call. The time value in the put offsets the time value in the call and the premium you get pays for the call. So worst case, your call expires worthless and you are forced to buy the stock at a the strike price. But, you don't lose any money unless the stock is below the strike of the sold put. And you get to keep the upside.

Just some thoughts. Not recommendations.






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