Earlier §12.7 suggested opening a separate long call alongside the
iron fly as a "companion" to capture moonshot upside. That framing
was wrong: it doubles capital at risk while buying expensive 80% IV,
and is redundant with the §6 conversion plan.
The real companion is what the iron fly becomes after the 3-month
conversion — a long $160 call at ~$45 net cost basis, financed by
realized theta. Same exposure as a $1,870 outright purchase, at 4%
of the cost.
Updated §12.7 to:
- Remove the "add a small companion now" suggestion
- Reframe the conversion product as the companion
- List the rejected alternatives explicitly so future-me doesn't
re-litigate them
Co-Authored-By: Claude Sonnet 4.6 <noreply@anthropic.com>
ojy
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