Master LEAPS Options for Bigger, Easier Gains

[@StockandOptionMyLifeOfLearning]

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[@tommypham1127]

Excellent contend. 👍. Thanks so much ❤❤❤

[@StockandOptionMyLifeOfLearning]

Thank you ☺

[@shainhaggadone9943]

DITM LEAPS PUTS are the King of leaps if traded right

[@mikesurel5040]

I was waiting for the risk reversal mention that came near the end 😁. With your long term options do you have guidelines about when you close the position?

[@StockandOptionMyLifeOfLearning]

There are several things I look at. If I’ve sold a LEAPS put, I like to close when we can realize around 80% of profit. If it’s a PMCC, I like to close when the deltas of my long LEAPS call and short nearer term call start to go agonist me if I can’t roll the position to improve the deltas. I’ll also close PMCCs when the company becomes way overvalued.

[@mixxndj]

Regarding Amgen, you received 638 but tied up 18,000 in buying power. That’s only a 3.5% annual return? Correct me if I’m wrong…

[@StockandOptionMyLifeOfLearning]

A couple things about your question: 1) with that position, we didn't hold it through expiration. As I mentioned in the video, that improves your return. 2) We were not tying up $18,000 because we did this in a margin account. And, we received interest on the extra cash we had set aside for this position. 3) If a trader is mainly looking at maximum return (forget risk, etc), this probably isn't a trade they want to consider. However, there are some advantages to doing trades like this as mentioned in the video. But there are some disadvantages as well. It's just one of many options trading strategies I use.

[@StephenBiggers]

@@StockandOptionMyLifeOfLearning I have started selling more cash secured put options when I was able to buy federated bonds at 5% to cover the put. This way I'm leveraging without using margin.

[@ericjohnson829]

No Call option leaps ?

[@StockandOptionMyLifeOfLearning]

That’s in another video. Here’s a whole playlist about LEAPS and PMCCs if you’d like to check it out: kzbin.info/aero/PL3j38I2YtGw3d2osU5O6XRHJ8-Wul2ZW7&si=LX5nPxGXnJHxxWth There are several about LEAPS call options.

[@shainhaggadone9943]

Find a a beat down Sector that's about to reverse. Look for a company way under valued. You then sell DITM LEAPS puts. You then take that premium and buy DITM LEAPS calls with the premium. 1.5 to max years out on contracts. Stock moves up, buy the puts back and let the winner run. DITM moves almost dollar for dollar with the stock.

[@benjaminpatel4187]

I feel like tasty really promoted the 45dte dogma so you turn more commission. So much easier to sell leaps on a PM account

[@bellango9132]

if it’s going against you, even 50%, would you leave it alone? or close it?

[@StockandOptionMyLifeOfLearning]

It depends on the reason. If it’s just technicals, I’d probably keep working it especially if it was a company I believed was undervalued. However, if it’s a fundamental problem with the company and something has changed so I no longer like the fundamentals, I’ll close for a loss.

[@shainhaggadone9943]

I sell DITM Leap Puts. I find ETFs or stocks who have been beat down but still have great fundamentals. They have high premiums and on a 2 to 3 year Short put contract, odds are way in the sellers favor for this type of contract to close out of the money.