Q LEAPS is a decent way of leveraging your account equity without explicitly going on margin, in other words, LEAPS can leverage your returns withlimited risk. In other words, if SPY goes up 10%, a LEAPS call option that you bought at the same time is going to experience a much greater return than 10%. Let’s look at a layman example. https://medium.datadriveninvestor.com/magnifying-stock-returns-with-leaps-options-b937d5333a15?gi=d678f93e4961 UQ
Q LEAPS is a decent way of leveraging your account equity without explicitly going on margin, in other words, LEAPS can leverage your returns withlimited risk. In other words, if SPY goes up 10%, a LEAPS call option that you bought at the same time is going to experience a much greater return than 10%. Let’s look at a layman example. https://medium.datadriveninvestor.com/magnifying-stock-returns-with-leaps-options-b937d5333a15?gi=d678f93e4961 UQ EvenOdd 发表于 2022-05-07 18:47
Q In this scenario here are the returns for both Jane and John: John — the stock buyer’s shares will be worth $12,000 — a $2,000 gain, or a 20% return on his investment. Jane — her LEAPS option will now have an intrinsic value of $20. Minus the $12 paid to buy the option earlier (excluding brokerage fees), Jane would now net a profit of $8, or $800 — a 67% return on her investment. UQ Cf. https://www.nasdaq.com/articles/pros-and-cons-trading-leaps-2018-01-05
? Q Options Are Usually Best Left to the Pros, But LEAPS Might Help the Common Folk https://www.washingtonpost.com/archive/business/2001/01/29/options-are-usually-best-left-to-the-pros-but-leaps-might-help-the-common-folk/fdd505f3-1e45-404f-a500-cdbe1954af3a/ UQ
Actually, I am still learning about Leaps. Now just reading this thread: https://www.elitetrader.com/et/threads/leap-trading.70426/ EvenOdd 发表于 2022-05-09 19:06
In another thread: Q long calls on OTM LEAPS caries a danger of cash buy-out ( well , probably not in case of AAPL). https://www.elitetrader.com/et/threads/any-advice-for-my-poorly-designed-options-trading-strategy.77556/#post-1214056 UQ
https://medium.datadriveninvestor.com/magnifying-stock-returns-with-leaps-options-b937d5333a15?gi=d678f93e4961 UQ
Q In this scenario here are the returns for both Jane and John: John — the stock buyer’s shares will be worth $12,000 — a $2,000 gain, or a 20% return on his investment. Jane — her LEAPS option will now have an intrinsic value of $20. Minus the $12 paid to buy the option earlier (excluding brokerage fees), Jane would now net a profit of $8, or $800 — a 67% return on her investment.
UQ
Cf. https://www.nasdaq.com/articles/pros-and-cons-trading-leaps-2018-01-05
Q Options Are Usually Best Left to the Pros, But LEAPS Might Help the Common Folk
https://www.washingtonpost.com/archive/business/2001/01/29/options-are-usually-best-left-to-the-pros-but-leaps-might-help-the-common-folk/fdd505f3-1e45-404f-a500-cdbe1954af3a/ UQ
In another thread:
Q long calls on OTM LEAPS caries a danger of cash buy-out ( well , probably not in case of AAPL).
https://www.elitetrader.com/et/threads/any-advice-for-my-poorly-designed-options-trading-strategy.77556/#post-1214056 UQ