Posted at: http://tradersfly.com/2017/12/ep-164-option-leaps/
★ SUMMARY ★
In this video we are going to be focusing on Option LEAPS, long term investment strategies to make more with less money.
We are going to talk about how to use options for longer term investments. However, you can still use some of the strategies and concepts I’ll share with you in a shorter time frame.
What are LEAPS?
LEAPS are Long Term Equity Anticipation Security, but basically, it’s just a long-term option. Long term means a different thing for everybody, it can be 6 months, a year, two years, five years, etc. However, in my opinion, this means holding options for more than 60 days, anything beyond that are longer term holds.
Disadvantages of trading option LEAPS
– They are higher total cost
– Change in price makes you less money
– Bid-ask spread can be a problem
– Volatility can shift and create issues with the position
Advantages of trading option LEAPS
– Lower cost for the time you hold
– Less time decay
– Longer life for the strategy to work
– You can still make money from time decay
You can use option LEAPS in all sorts of ways. You can use them to make some money from time decay, and you can reduce your risk by using less of your capital to make more money.
In this video I’m going to show you on screen some strategies with option LEAPS and how to set them up, so that you can see how to make money with them.
★ REGISTER FOR A FREE LIVE CLASS ★
http://bit.ly/marketevents
★ GETTING STARTED RESOURCE FOR TRADERS ★
http://bit.ly/startstocksnow
* Please note: some of the items listed below could and may be affiliate links **
* Trading Software / Tools *
Scottrade: http://bit.ly/getscott
SureTrader http://bit.ly/getsuretrader
TC2000: http://bit.ly/gettc2000
TradeKing: http://bit.ly/gettradeking
TradeStation: http://bit.ly/getstation
★ SHARE THIS VIDEO ★
★ SUBSCRIBE TO MY YOUTUBE: ★
http://bit.ly/addtradersfly
★ ABOUT TRADERSFLY ★
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.
Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better.
Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!
FREE 15 DAY TRIAL TO THE CRITICAL CHARTS
– http://bit.ly/charts15
GET THE NEWSLETTER
– http://bit.ly/stocknewsletter
STOCK TRADING COURSES:
– http://tradersfly.com/courses/
STOCK TRADING BOOKS:
– http://tradersfly.com/books/
WEBSITES:
– http://rise2learn.com
– http://criticalcharts.com
– http://tradersfly.com
– http://backstageincome.com
– http://sashaevdakov.com
SOCIAL MEDIA:
– http://twitter.com/criticalcharts/
– http://facebook.com/criticalcharts/
MY YOUTUBE CHANNELS:
– TradersFly: http://bit.ly/tradersfly
– BackstageIncome: http://bit.ly/backstageincome
source
Why do you state, Theta, sometimes it makes you money, and sometimes it cost you money ?? What changes it from positive to negative. in the money/out of the money ? Awesome Video !
I'mimpressed, how did you learn thinkorswim like that, is rhere a class you can take ?? Thanks/
OMG. Bought some leaps On 7/11/2019, ILMN been watching before earnings. Bought, ILMN Jan 15 2021 340 call, that evening ILMN pre announced lower earnings, the stock went down $60 dollars a share, unbelievable, I'm in deep trouble !! HELP.
When buying LEAP options which is more recommended OTM or ITM ??
What simulated trading software are you using?
If I think FCAU will double in price before 1/2021, what do you think of the 1/2021 Call at 27 strike?
Options are complicated I guess I should start learning asap.
Last week I bought a MSFT 18 April 2018 100 Call Buy +1 @ 13.57. A 6 month to expiration call option on Microsoft, deep in the money for a lot of intrinsic value, a delta of .75 and hardly any theta decay. I might go for a leap next.
"If you've been burned with time decay before"… Lord knows.
If you did this exact trade at the time he released this video you would have made a ridiculous amount of money. The $1200 strike calls for 8k each he was looking at are $52,000 each right now.
what is the benefit of trading 8 months long monthly options
My brother and Sasha are identical, Jeez
Hey Sasha, is this TOS platform available for anyone for free? My broker doesn't have the capabilities for this charting but I'd like to use it to lay out my strategies. Thanks.
Sasha buy Bitcoin✅
Dear Shasha Sir, as usual you have made great videos … please made video on what fundamentals we can check before entering for long term, for example ratios,market capitilizations, sales growth , EBITA,CAPEX ,expansions ,please mention their range too which is best for investor to enter and all factors so that investors could be worry free and have good sound sleep.. Thanks in advance and Kind Regards
Break these long YouTube's up into 2-4 parts so we can get through them
Great video! I have an unrelated question, what annotation tool are you using?
evergreen sasha evdakov………option needs adjustments from time to time as per mkt conditions