Traders used deep ITM covered calls on EQT during the 2026 war to collect premium while limiting downside risk. The strategy worked as natural gas prices swung.
Alpha Score of 45 reflects weak overall profile with weak momentum, poor value, strong quality, moderate sentiment.
The US-Iran conflict in March 2026 sent natural gas prices into a tailspin. EQT Corp, the Pittsburgh-based producer, saw its stock swing with the market. A trading education blog published a detailed account of an ultra-defensive covered call strategy that used EQT as the example stock.
The blog's author said the approach involved selling deep in-the-money covered calls and deep out-of-the-money cash-secured puts. Deep ITM calls generate high time-value returns because the premium is large relative to the stock price. Deep OTM puts provide income with a low probability of assignment. Together, they create a buffer against sharp declines, the author wrote.
The strategy was part of a six-part course covering option basics, traditional put-selling, the wheel strategy, buying a stock at a discount via puts, and ultra-low-risk put trades using delta and implied volatility. The blog also discussed the collar strategy, which adds a protective put to the covered call, guaranteeing a maximum loss. The author noted that Bernie Madoff pretended to use this approach, calling it the split strike conversion strategy.
For EQT holders during the war, the strategy offered a way to stay invested while collecting premium. The stock's AlphaScala Alpha Score of 45 out of 100, labeled Mixed, reflected neutral sentiment consistent with a defensive posture. (See the EQT stock page for details.) Natural gas prices faced headwinds from war-related supply uncertainty and demand shifts. The deep ITM calls locked in gains on the stock position while the short puts absorbed some of the downside.
The blog provided a 1-month comparison chart of EQT against the S&P 500 on March 26, 2026, showing the stock's relative performance. It also included strike price analysis and delta analysis for the ultra-defensive trades. The author used the BCI Trade Management Calculator for initial calculations. The preferred deltas were near 0.80 for ITM calls and below 0.20 for OTM puts, ensuring high time-value capture with low assignment risk.
The blog's educational content has drawn testimonials, including from an attorney who hired the author as an expert witness in a multi-million-dollar options trial. The blog's next live event is scheduled for January 23, 2027, covering technical analysis, options strategies, and ETF mastery.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.