LEAP

neothedreamer

I think someone wrote a DD a while back that LMT was going to drop and they were betting long term with LEAP Puts. Wish I could find it.

asukakindred

It has an expected price target of $55. [https://simplywall.st/stocks/us/food-beverage-tobacco/nasdaq-smpl/simply-good-foods](https://simplywall.st/stocks/us/food-beverage-tobacco/nasdaq-smpl/simply-good-foods) . Also, I am a big fan of Quest Nutrition and Tom Bilyeu so my belief in the company is quite strong. Have a $40/2023 LEAP and already up a few hundred on it. Feeling good.

ropingonthemoon

IPOD/F have more retail interest in them due to chamath. AGCB recovered because AGC pumped. LEAP only briefly broke NAV on low volume but is almost always traded above 10.

piggymou

Don't know, will probably keep my commons and continue to sell monthly $12.5 on my $10 LEAP (i.e. PMCC strategy)

CielSchwab

they IPO'd during the crash but other spacs such as AGCB, LEAP, IPOD/F have now recovered and are trading above $10

GimmeCenterKnurl

Better question: if it's truly a LEAP, then why are you panicking now?

Volatility_Hunter69

I'm a fan of LEAPs. The strategy is definitely more long term, I would consider thinking of LEAP investing along the lines of Covered Call investing. You can sell shorter duration calls against your LEAPs and cut costs significantly especially when compared to Covered Call strategies.

asapbandaid

was LEAP for the ticker or LEAPS?

Desert_Trader

Exercising a LEAP is an INSTANT LOSS. This should be immediately clear if you understand where the price of an option comes from. Re-study intrinsic and extrinsic value. This is critical because all of these types of questions are based on this simple fundamental.

ZenYogi9

Tax implications - Am I thinking this correctly? Assuming XLE cost basis of $40, strike of $65 and a tax rate of 25%. Selling a short dated call - If XLE goes to $70 (within 30 days), then tax effect $7.5 ($30\*25%) and Gains after tax = $22.5. Finally, Net **Gain** after tax = $17.5 ($22.5 - $5 option value at expiry) Selling LEAP - If XLE goes to $160 (within 2 years), then tax effect $30 ($120\*25%) and Gains after tax = $90. Finally, Net **Loss** after tax = $5 ($90 - $95 option value at expiry) So, if the stock has a runup (more probable with LEAPs), then the tax implications could result in Loss. Is this correct? Thanks.

TofuTofu

No one talking about F? Looking like it's gonna hit a 20 year high. Big OTM LEAP owners rejoicing.

RyarJedi

I am thinking about buying 2023 leap puts to hedge my gains in Bitcoin. I am also pondering selling deeper monthly puts to finance the leap premium. My thoughts are that if BTC takes a large dive, I collect the downside on my purchased leap and take advantage of buying low if my deep put gets assigned. On the other hand, if Bitcoin continues to climb over the year, I benefit from holding my BTC, and my LEAP put is financed by selling the monthly puts. I am trying to work this out. Thoughts and comments are appreciated.

amarghir1234

Not stupid but probably a position that requires management. NVDA trades at a ridiculous multiple and would be prone to massive volatility if there is a negative surprise. One earnings report below expectations and you could lose entire premium on the LEAP.

InverseHashFunction

What's a poor man's covered call? A short dated call sold against a LEAP?

notjustdad

I have a 2023 LEAP so the dip doesn't bother me. She will be 25 soon enough.

MohJeex

"always" is not really accurate. Look into the years after 2000 and 2008. Also the max LEAP you can buy is something like 800+ days, which is less than 3 years. At which point, just buy the stock, instead of incurring transaction costs on a wide spread due to illiquidity.

CheeznChill

This is all because I mentioned yesterday that my open positions were up \~11% decided to buy a LEAP on V today either way

flintzke

>Pray to Jebus The fact you still have to pray to Jebus is a red flag IMO. Realistically, even a 20-25% move is a lot for most stable securities and furthermore it would have to do that well before 6 months out to be profitable. TBH anything lower than like .4 delta is outright gambling unless its a LEAP. Safest nake option bets are ATM or ITM and at least 3 months out from expiry. It takes capital to do this but your P/L ratio will go up substantially. If you are fidgety and don't like buy and hold strats, buy 100 shares or a > .6 delta call and sell weeklies against it to make things interesting.

xJuSTxBLaZex

Your LEAP is getting close to the time when I would normally close it to avoid theta decay anyhow. No reason to try and roll any longer. This is a great scenario. BTC your short and STC your Long and enjoy the profit.

TheGhostofBillHwang

TSLA LEAP puts

golden_bear_2016

Oh sorry, my WSB autism got carried to this subreddit. You should just sell the LEAP and close both, you got max profit.

swingorswole

Do I though? $SNAP fell a great deal and, to my benefit, the premium on the $40c Jan 2023 LEAP was very low, a bargain really. That's why I bought it. If $SNAP goes from $55 (today) to, say, $65 by 4/1/2022 (it was at $75 when it dropped a few days ago), my $19.80 LEAP will be worth $27.16. If it gets back to $75 by 4/1/2022, it will be worth $36.45. If instead the price stays around $55, then on 4/1/2022 my LEAP will only be worth $18.45 vs the $19.80 I paid. (Because of the great pricing on it right now -- it's almost all intrinsic, very, very little extrinsic premium.) If it goes down $10 to $45, then my LEAP will only be worth $10.77. I went into this with the assumption that $SNAP is beat up, and may fall more over the next few months, but will rebound to at least current levels simply because every kid, teenager, and young adult I know uses it, and I don't think it's going anywhere. Based on those assumptions (which may be wrong), my downside is -$10 and my upside, if $SNAP returns to Sep 2021 levels by Apr 2022, is +$16.65, with some risk that it trends sideways and I lose -$1.35 and bail in April. Overall, a good bet to me strictly based on the deep dive + low premium on this particular trade.

modsaregayasfukkk

Same issue with me. Fidelity says I’m -3% on the day but I’m clearly up. Mostly LEAP gang as well.

diabeetis

bought a 2024 LEAP put today around the high

Wildcats33

You could sell a short-term call against the LEAP call to somewhat make up for the missed dividend. If the short-term call gets tested, the long-term call, if deep ITM, probably gained value. The short-term call could then be possibly rolled higher for breakeven or a credit.

diabeetis

AMD was my first option. LEAP calls when it was $4 a share. we been together through thick and thin, time to flex this huge growth dick on em 💪

cry_standing_up

Just a noob who started to lean about LEAPS yesterday. One question which is probably simple. The only way to take advantage of the leverage which a LEAP provides, is by exercising it correct? So as an example, I'm looking at a 2024 ITM Microsoft call for a strike price of 200 USD. If I buy that call, and possibly Microsoft does a 3X from here, the only way that I would be able to take advantage of that is practically buy forking out 20K to buy the Microsoft shares and sell them at market price. I know that I would pocket the difference, but what if I don't have the 20K at that time? Is it a bad idea to buy the leap? Or would it make sense for myself to look at LEAPs for companies with smaller stock price?

Psyched4this

$HYFM always goes up when I don’t own it, only down when I do 🤷🏼‍♀️ Maybe I should just buy a LEAP and exercise it so I don’t have such an ugly cost basis

hnr01

Buy a LEAP 2 years out. They have too many government contacts to fail. They’ll be fine.

Psyched4this

Might buy a JOBY LEAP

TheLifeandTimesofTim

I think that's right on. The issue last time people we're completely indiscriminate (e.g. thinking Canoo and Romeo had just as high a chance of becoming a $100B company as Arrival as Quantum Scape). The million dollar question now is: will all of this attention and excitement spread to the DAs from SPACs from superb sponsors that make deals with truly promising companies, e.g. LEAP, HAAC, AGC, VYGG, TCVA, FWAC, etc.

Civil-Woodpecker8086

This may or may not apply, but by default, rule is FIFO. Say you got assigned on a stock (we will use KO, or KHC, or UWMC. Because these pay dividends) or you slowly build up 100 shares and now decide to sell CC. And we'll say you sell a LEAP expires Jan 2023, $15 OTM; so between now and 2023 you are collecting divs and decide to auto re-invest the money (I use Schwab and I can set auto-reinvest). So now it's Jan 2023 and your CC is ITM, but you now own 105.3246 shares, by LIFO you could/would pay a few bucks less in taxes. Such an example would be like you bought KHC over a period of few years and cheapest/earliest shares are around $30, and your LEAP sold is for $60, that would be Long Term Gain, but you'd have to compare it to the shares acquired later and possibly pay higher Short Term Gain. Hard question to give a definite answer with so many possibilities.

diabeetis

once this parabola breaks im going from TSLA weekly calls to LEAP puts

TheLifeandTimesofTim

Aside from LEAP is in another league.

SPAC-ey-McSpacface

It feels like the SPAC market is just waiting for a DA from one of the brand name sponsors. Give the people what they want & I think if we get a DA from something like a CRHC, IPOD/F, PRPB, LEAP, CVII/CCV/CCVI, LFTR, APSG, CONX, etc, it could get a big DA pop.

diabeetis

buy 1 LEAP put now, 1 at like $1200 if it gets there

diabeetis

DCA into LEAP puts

wanttodoCS

LEAP puts? 🤔

TheoHornsby

Yes, LEAPS can expire worthless at expiration. While I appreciate the effort that you made in your explanation, it's apples and oranges because you are comparing the P&L of a 40 share position with that of a 100 share position (one long call LEAP). The appropriate comparison would be 100 shares versus one call LEAP and for full disclosure, it should also include "what if" MSFT drops to and below $180 in your example.

TheoHornsby

As u/norkhal explained, a LEAP is an option that expires more than a year from now. Standard option might be a better description than traditional option.

DukeNukus

I run spreads, so the rules are the same for credit spread and debit spreads, take profit at 50% of max gain (take profit order issued shortly after opening the spread) and close for loss at 25% of max loss (except for LEAP spreads, as they like to wiggle a lot, so those are just left open until the bid/ask spread becomes more reasonable), though depending on the situation, might wait until 50%. I consider the current delta and theta of the spread and direction of the stock to work out if it's more likely go deeper in the hole or not. Theta gives some indication as to what the buyer side is thinking (higher theta = more demand for the option = more likely the buyers might be on to something). So typically close losing spreads if they start going too far theta negative (if they were theta positive when I opened them) or if they go too far theta positive (as while nice for the theta, that's moot if delta losses are killing me and there's a good chance it isn't moving back my way).

Pittsburgher23

LEAPs can be in-the money, at-the-money, or out-of-the-money... you can easily find a LEAP for $5k on a $400 stock, not deep ITM like the original poster mentioned, but at the money or slightly out of the money. LEAPs are effective to hedge against binary events or potential bankruptcy. A stock going to $0 is always possible. The stock could be $1 instead of $0... the point still stands.

TheoHornsby

The "Stock Replacement Strategy" is where you buy one high delta deep ITM call LEAP instead of 100 shares. If implied volatility is reasonable, you'll pay minimal time premium (even less if there's a dividend). ADVANTAGES: \- LEAPs have very little time decay (theta) for many months which means that the daily cost of ownership is low. \- On an expiration basis, the call LEAP has less catastrophic risk than share ownership if share price drops below the current stock price less the cost of the LEAP. Below the strike price, the shareholder continues to lose whereas the call owner loses nothing more. \- Prior to expiration, the LEAP has less risk than the underlying because as the stock drops, the call's delta drops which means that the call LEAP will lose less than the stock. How much less? Not much initially. It depends on how deep ITM the call LEAP is, when the drop occurs (soon or near expiration) and what the implied volatility is at that later date. \- If the underlying rises nicely, you can roll your call up, pulling money off the table and lowering your risk level, something you can't do with long stock. You'll give up some delta but in return you'll repatriate some principal. The disadvantage of rolling up is taxation if it's a non sheltered account. DISADVANTAGES: \- The amount of time premium paid \- LEAPS tend to have wide bid/ask spreads so adjustments can be costly. Try to buy them at the midpoint or better and use spread orders for rolling them. \- The share owner receives the dividend and the call owner does not. \- If the underlying has dropped a lot, implied volatility is likely to be higher, making them more expensive to buy. If you still like the upside potential of the stock, I believe that it's a good idea to roll your LEAPs not too long after they become traditional options in order to avoid the accelerating theta decay. If you follow all of this then the next leap for many, so to speak, is an income strategy called the Poor Man's Covered Call where you use the LEAP as a surrogate for the stock and you write OTM calls against it. Technically, this is a diagonal spread.

Pittsburgher23

It's important to remember the scenarios that could occur when buying a LEAP versus 100 shares: 1. Uber Bullish - if the stock skyrockets and goes above it's breakeven price on the option... the $ amount you make might be slightly lower than owning 100 shares, but you will have a much higher % return since the option costs less than the 100 shares. 2. Flat - if the stock doesnt do much and stays relatively flat below the breakeven price, you will be disadvantaged to the stock owners as you will lose more money and a higher % loss. 3. Uber Bearish - if the stock tanks, you will be better off than the stock owner because your loss is capped at the value of the option. So if you paid $5000 for an option instead of $40k for the stock, your max loss is $5k versus their max loss of $40k.

Pittsburgher23

Buying LEAPs usually makes more sense than 100 shares. The only exception would be if the stock is a pretty flat company and pays out a large dividend. If a stock doesnt move over the life of the LEAP, you will be disadvantaged compared to the stock holder because you paid premium for your option. The good thing is you'd have less money tied up in a flat stock. Buying deep ITM LEAPs is a great strategy, especially in a bull market.

ChasingVega

If you want to stay in the trade, once you have a decent profit, you can also hedge by shorting the new ATM the call in the same expiration. You want to aim for the credit to be more than what you paid for your original LEAP and more than the width of the spread of your strikes. If the new short meets these conditions then you'll have banked a bit of profit and completely hedged your downside risk. This way the trade may be extended for a bit more profit potential. Just make sure to calculate your max profit potential with something like optionstrat or options profit calculator beforehand to ensure you happy with the setup. Obligatory: This is not financial advice and YMMV.

Outrageousirish

AAPL is about $150 now The ATM January 2024 LEAP is about $26 The ATM January 2023 LEAP is about $18 Difference is about $8. ATM LEAPS have a delta of 0.5, you need the stock to go up $16 to break even.

vra2a

Usually the way I approach this: If you can afford the shares, might as well buy the shares. Extrinsic call value declines over time and eventually, the LEAP is worth the price difference if you just bought the shares in the first place (it might even be worth less)

diabeetis

TSLA needs to build 38 more gigafactories in the next ~8 years to deliver the 20 mm deliveries priced into analyst expectations for 2030. About 4-5 gigactories per year in addition to Germany and China. the moment this piece of garbage stops going up parabolically we loading up on LEAP puts

JYablan

Are you buying or selling this LEAP?

ChasingVega

That's actually not a bad idea if you have very strong conviction (i.e. super bullish on that company). Others have mentioned the cons: capital intensive, you have to be right about the direction, and it's sometimes psychologically hard to take profit. If you do end up deciding to take this trade and once you see good profit on your LEAP, there is a method to bank some profit and still stay in the trade. You can hedge by shorting the new ATM call in the same expiration. If the stock has risen to the the point where the credit for shorting the new ATM call is more than than what you paid for your original LEAP and more than the spreads between your strikes, then you have completely removed downside risk. This strategy generally work better with an OTM LEAP meaning you have to be super super bullish. Just to be sure to stimulate the trade with options profit calculator or optionstrat to make sure you're clear on all aspects of the new trade. This hedging strategy is basically legging into a bull call spread or debit call spread but you get a credit for legging in if the original trade goes your way. Obligatory this is not financial advice and YMMV.

Walter_Whitewall

Bought some 330 11/5’ and 330 LEAP’s for FB on Friday. Hopefully it was the right play.

NoneMoreHip

But don't options have an intrinsic value? If I bought a LEAP 2 years out for a low premium wouldn't I still make a ton of money if that stock went up well over my strike + premium price no matter how slowly it did it? Isn't the only real risk in OPs strategy (assuming constant growth) that they buy too far OTM and it's never reached?

teteban79

Just as an aside because I've already seen the comments The S in LEAPS is not a plural , it stands for Security (Long-term equity anticipation securities). You cannot say you buy one LEAP, you buy one (or many) LEAPS, always with the S

-_1_2_3_-

It’s called a LEAP

Deeperfuckinvalue

Dont worry its gonna pick up , you have 3 months so dont panic unless i mean your port is ball deeps, the option flowsum is full of optimism and lots of buys . It will recover back. You could sell deep ITM LEAP as well in the meantime or just do basic credit spread to minimize your cost basis.

SwolatmaGaindhi

I bought a 2024 LEAP on friday

wheeler916

Nice LEAP. Some might say you took a leap of faith on TSLA

Spiritual_Extreme_81

Probably TSLA 1200c LEAP?

CheeznChill

Very true all around. I’ve sold a few cash secured puts and made a bit of profit on those I’ve closed so far and the thought definitely crosses my mind, especially LEAP though I’d wait for a red day before doing that to increase the premium. I’m still new to the market and torn between the buy/hold/buy the dip method and setting a target profit goal (20% in my case) and selling. I’ll likely jump back in when AMD dips a bit, but I has completely forgot their earnings were next week AND today was seemingly kept in check due to options expiring. That’s the main reason I wish I had waited a bit more. Then again, it seems a good earnings doesn’t always result in a price increase. At peace with the decision now, but definitely looking to sell a put if/when it next drops under it’s MA’s. Thanks!

talm0

Just the opposite of you said about a good broker making a judgement call on your behalf. If my broker exercised my LEAP option for me, in any circumstance, I would immediately seek a different broker. If you own a LEAP with any amount of extrinsic value remaining, especially if it’s significant, you will immediately forfeit all of it and purchase shares to “cover” the assigned short option. This will likely immediately put you into a deep loss with zero recourse. What should happen is you should take assignment and then choose how to manage the new position. You’ll have the opportunity to offload the shares, sell your LEAP if you want, exercise your LEAP, etc.

hbcbDelicious

He would have to come up with the other ~34k to buy 100 shares. That’s the benefit of the LEAP. Same capital gains with less money in the play. There is probably very little time premium this deep in the money anyway. If he thinks it’ll keep going up hold if he thinks this is it for Tesla, sell.

modsaregayasfukkk

Maybe I'll buy an AMZN LEAP, I thought. Went to check the price: $19,592 for a Jan 2023 4000C ​ ^(.....nevermind then)

5starboy2000

In this case just buy a really far out LEAP and deeper ITM, in that case even if the market does go down your option still has value and has ample time for recovery

provider14

I wish they had options. FD LEAP puts would pay better than a Provincetown Wendy's.

DarkStarOptions

Your question is one of risk vs reward. It's on a spectrum. At one end is super deep ITM which is as safe as one can be. The risk is extremely low and you won't make that much money (but often more than just holding onto stock). These are quite expensive. For instance you can sometimes buy such a deep ITM call that the delta is 1.0. Or 0.99. These track the stock penny for penny and have virtually no extrinsic value and you are paying a fraction of the cost to control 100 shares. For instance if the stock is worth 100, you can buy a 1 delta LEAP that might cost you 70. So you are spending 70 and not 100. You can also buy deep OTM calls too. These are extremely cheap but carry high risk. The stock has to go up for those to be worth something. you are spending very little but risk losing that cost 100%. ​ See it's just a spectrum. You can literally graph this on a spectrum and you can decide exactly where you want to be. Delta is a good approximation of risk here. 1 delta is basically zero risk of losing principle, 0 delta is 100% risk of losing principle. For people who buy deep ITM LEAP calls, they are usually doing it as a replacement to owning stock and buy it anywhere from 60-80 delta.

cricket_observer

Why don’t you sell near calls against your LEAP?

mhlong24

Realistically if you want to keep your LEAP contracts in the future then you need to close your short leg before the actual blows so far past the strike

DarkStarOptions

BTW it depends on what you mean profit..... You mean profit % or profit $$$? For instance, if you buy a LEAP for 10 and sell it for 20, that is a gain of 10 and profit of 100% If you buy another leap for 25 and sell it for 40, that is a gain of 15 but only a gain of 60%. ​ So which one do you mean?

FactoryReboot

It’s like 22% so probably not a bad idea. Maybe I’ll buy a near DTE call to hedge my expectations for Vega to go down. I’d be pissed if I missed the recovery but don’t want to buy all the expensive LEAP Vega

Fastback98

Saying that CCs and The Wheel either work or don’t work, as general statements, is definitely not telling the full story. Different strategies work better or worse in different market conditions. Covered calls and the wheel work decently at swing highs & lows respectively in choppy, generally sideways markets. Call backspreads work great on pullbacks when a strong bull market is expected to continue. Poor Man Covered Puts are good on weak stocks in bear markets. Buy a LEAP on a pull-up and sell short dated puts on big legs down.

perky_python

What defines a failure? Not finding a target? Been done. Losing a lot of money? Been done, lots of times. Getting investigated by the SEC for fraud? Been done. Embarrassing the entire SPACverse by being utterly ridiculous? Been done (today). In the grand scheme of things, LEAP is a shining star of the SPACverse.

Grandmaparty

I think LEAP is gonna be the first spac failure.

kapache33

I kinda get the point on this question, but I like to get some clarification from the public. ​ Let's say that there's a stock trading at $4 but I feel that it will trade at $6 in the next several months(the stock was trading at 8 not long ago). I like to get selling put options, is it possible to say write a LEAP that I am willing to buy X stock at $5 hoping it sells higher by the time the contract expires? I m not sure if that makes sense.

ialwaysforgetmyuname

Scottish is correct. You entered the trade understanding that there would be capped profits. It looks like you set your trade up so your LEAP would be profitable at the short call strike. You have achieved your goal. I would wait until near expiration and if the short is still ITM than close the diagonal and do it again. My advice is to look at the LEAP and the short call as a single trade and set a profit target that you want. When that profit target is reached then you close the position.

becuziwasinverted

I sold LEAP short puts

Sauceeeey

Looking to buy my first LEAP, it’s a Jan 2024 2.5c but the IV is currently 93%. Is that too high?

yaMomsChestHair

I honestly just like NFLX, TSLA and SPY for high premium LEAP plays. This ain't worth the money IMO if going near the money or ATM.

AlmightySnoo

March 2021, okay not so "LEAP" anymore but they were months ago lol

thesmiter1

I'm almost entirely in AAPL and NVDA LEAPs that are now either at or in the money, with a sprinkle of AMD, but I bought a tiny lil RKLB LEAP and some uuuu yolos just to feel alive 🥰

RallMekin

Watching theta decay print $$$. Praying BABA doesn’t take a nose dive again because I bought a leap. Watching my RIOT LEAP and it’s CC closely. Looking for entry into BITO when BTC pulls back.

talm0

I was able to afford 1 PUT LEAP on TSLA. If it didn’t go to 400 by right now, I’be smoked. I ain’t looking till tomorrow morning.

boldPlayIm

It would be a small chunk on money, so I'm not sure I could buy LEAPs with that. Also, LEAP is a slow play

CielSchwab

What warrants are you buying? looking to add a few other positions I currently hold AVAN, CRHC, HAAC, HZON, IGAC, LEAP, LFTR, OCA, TEKK

Psyched4this

I’m saving up to get a LEAP of Jan 2023 2.5c which I will exercise

mwing95

Horrible PMCC for this exact reason. Your cover should never be below your LEAP. Roll and take the L

diabeetis

LEAP puts

diabeetis

TSLA LEAP puts up here are literally free money

Psyched4this

No idea, fuck I should’ve bought that LEAP I was thinking about

Neuromantul

Maybe if you're not sure about how it works it would be safer to buy some put LEAP only risk the premium you paid. Or if in europe short it as a CFD

MotownGreek

About 80% of my portfolio is in funds, to include index funds. From an individual stock perspective, I've made good gains on $GPS (Gap Inc.). Started investing in that at around $8 per share and sold off roughly half the position around $30 (50% gain YTD realized with about 15% unrealized). I also made a killing on a LEAP position in $COST (Costco) earlier this year (\~300% return on that investment). Most of my individual investments comprise of no more than 5% of my total portfolio and are undervalued stocks in their respective industries. It should be noted, even with an outstanding return like my $COST LEAPS, the overall impact on my portfolio is rather minimal. It takes several well researched and undervalued picks to move the needle a significant amount. Returns this year are far surpassing my gains from previous years. I've been able to beat the major indices but no where close to where I'm trending this year. This has been an abnormally good year.

AnalLeekage

You think this retard had enough capital to buy more than 1 LEAP?

Suspekt_1

GME is dead, rolling LEAP calls will let shitadel keep this going forever. Sorry mr bagholder🕺

Pro_Hobbyist

I tried this as my first PMCC 7 months ago. Sold a few weekly CCs but the premium was so low I got lazy and stopped selling. Held the LEAP and now it's up 60%.

Mug_of_coffee

I had to roll $17.50 C 10/15 to $20.00 C 12/17 for a credit. We'll see what happens, but i'll likely sell a LEAP against them if it continues to go against me.

CoffeePorters

It doesn't have to be one or the other. I started off with individual stocks, bought high sold low, then moved to index funds and started growing a nest egg, and then over several years learned how to pick stocks and manage a portfolio, with an occasional LEAP. I'm happy to see sensible advice, but I would also like to see more constructive discussion about stock picking and managing a portfolio and finances.

TheNewOP

My acct went from 13k to 83k during Gamestop. Then I made some extra money and brought it to 130k. Still looking for high alpha trades/investments, I seem to miss out on them a lot, even when I'm pretty sure about them. Ex. stared at AMD for 2 hours when it was at $8, mulled $SNAP when it was $5 a couple years ago during my lunch break, considered buying OTM LEAP calls on TSLA in 2018, didn't see that Newegg went public, etc. I chalk it up to hindsight being 20/20 and try not to get greedy/emotional. I wouldn't say it's life changing, because imo by definition, my life hasn't changed. I have no mortgage, no house, no struggling company that's cash strapped in need of a second wind. I can't retire off of this money. It's just business as usual, just with slightly more money in my brokerage acct. But I do have a step up on my age group (early-mid 20s). I'd say career choice and career development are more important to consistent gains over time. The get rich quick stuff is just an extra game of chance.

polynomials

Suppose I think an equity is almost guaranteed to double in value. Let us say it is currently priced at $15 and I am confident that in the next 1-2 years it will almost certainly go to $30. The call premium for a 1 year LEAP is approximately $ .0014, but it doesn't appear anyone is even writing call options for that price because currently no one thinks that will happen. I basically see it as a low-risk high reward play that only exists because of a certain extreme market inefficiency that no one is paying attention to. I guess my question is, can I just put a bid on an option for that price? Will a market maker write that option to me, thinking they are just taking free money?

wallstreetbetsdebts

Pleas fly again, I wonder if his LEAP futures contracts are still ITM?

toydan

$600 1/2024 call is under $37K rn. Can sell calls over them. I am currently doing that on a couple $TSLA LEAPS. the LEAP would act like 80 shares. So a form of leverage.