What to Do If You Can't Afford LEAPS
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- Опубліковано 19 жов 2024
- 💎Free Stocks, My TradingView Profile, and Social Links: linktr.ee/inth...
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As always, I will never try to have you contact me on WhatsApp. Beware of scam bots.
Wait.. Who did i just send 1k too 😩
Thank you! I follow your Iris and Public portfolios, so I'd be more than happy to follow-up on the comment I made publicly on here via those channels (or Discord).
I really admire your TD Ameritrade setup for options trading, so I was interested in inquiring as to whether you had a template you use that could be shared. 😁
What’s your opinion of UVXY ? If I’m bullish on this would you suggest buying the stock or buying a leap call say a year out ?
Hey.
You said the link to the options profit calculator would be in the description. Am I being dumb or did you miss putting it in? 😅
Yeah I figured as much
So crazy how when I started watching you about a year ago I had no idea what you were saying as if you were speaking another language but now I feel like I’ve learnt that new language and can think about how I would like to use these strategies in my own portfolio. Love the video’s man keep it up!
Same!
Same here!
I am in that position right now. No idea what leaps options are :-(
Same
Truth
The only thing I disagree with is the changing your bid price a penny at a time. The ALGOS will destroy on leaps doing this.
Have tested this a few times, if don’t get the instant fill, and instead keep raising the offer, the algos will keep raising their ask.
The same also happens in reverse when you are trying to sell. Be very careful with this! Easily lose an extra hundred or two from that. (However it’s also fun if you hold the leap to keep posting a lower ask! Makes the algos go lower too, help someone else get a cheaper fill lol)
Just wanted to let ya know, I made the move. I bought leaps 2 days ago and started selling covered calls against those bad boys. Granted it was just to get my feet wet, so my premium was only $3 after fees. But today or Monday I'm gonna really start farming. Its mainly due to people like you and your valuable content that I made the "LEAP".
Thanks inbox For more information and guardians on how to invest and trade👍
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Tell him I referred you to him
@@user-px1vg5eg1i First pin my message so I know you're not a fake. :D
@@jzk2020 its fake.
Thanks, mind blown. Learning.
Sometimes I feel Im only hear for the "Love you" & song at the end.
Will keep coming back for more mind blowing info.
not sure how far back you can backtest with TOS, but can you put out a video backtesting two things:
1) in the event of a market crash, buying a 2nd LEAPS contract to help you recoup your losses faster. for example, when you showed the example of buying MSFT at the absolute top before the march 2020 crash, what if somewhere on the way down/way back up you bought a second contract. march 2020 was a bit of an anomaly given how quickly the market shot back up, but what about after the 2008 crash?
and 2) how LEAPS work in somewhat sideways markets. we've been in a bull run for a while and if it slows down or trades sideways, it would be interesting to see how to manage your LEAPS in those scenarios
You can sell covered calls against your LEAPS in flat market environments
Super late response, but if you think about it, in a sideways market, you're really just losing your extrinsic value, which for leaps is ok because leaps primarily consist of intrinsic value. Of course its not the best, but its not the worst. If I'm wrong lmk
Hey man I just wanted to tell you Thank you for all the training videos. I watch and watch and rewind and watch again. As a 20+year wildfire instructor I commend you on doing such a good job. I have learned so much from you. Thank you so much man. You are the shit! Please keep the training videos coming. Watching your covered call vids right now. Keep it up my friend.
Leaps are awesome, one thing that’s keeping me sane throughout the last few weeks of massacred ER’s is knowing my leaps aren’t budging.
Awesome video as always!
i love your energy, sarcasm and attitude... thx for the videos :)
Your videos are very easy to understand!! Making me continue to watch all your playlist! Continue the good work, you’re the best!💥👌🏼👍🏽
You have one of the BEST investment UA-cam pages family. You gotta keep the content coming.
I bought my first leap this month after watching you explorations...so far so good.
I hate that I'm super proud of myself for figuring this out on my own. I'm getting the hang of this and its exciting. Let's get this money people!
I love this guy.
Your videos are great! Thumbnails are crushing too. Who would have thought that you don't need to use outer glow??
9:50 Look at all those GME option trades on the left lmaooo
I watched several other videos on options and felt like they were talking Chinese or that click, click, pop language they speak in "The Gods Must Be Crazy". Until I found you I don't know it's just the way you explain things...it all started to click and I was just curious, if you buy a option in the morning and sell it that afternoon does that count as a day trade? Jus wondering for a friend. LOL Keep up the great work Sir....
realistically with intrinsic and extrinsic value you shouldnt aim to buy and sell options in such a short time frame and if you find yourself doing so maybe look into better contracts or positions to hold for your portfolio because with options the smaller the timespan the more mustard shit they are to deal with typically
You should make a video on selling puts on margin (naked puts). You made a mention of doing that at some point in the portfolio and I’m curious how to do that
sell put spreads instead
"It doesn't matter how you're making money as long as you're making money" lol
@Ruben Ponce hear me out. we can be partners. and to raise funds for job we can sell IOUs to people promising them a share of the loot.
pro tip: dell srugs!
The info you put out has helped me tremendously over the last year and half thanks for taking the time to put this content out
This is great info. I have about 15k portfolio and was looking to put about 30%-40% of my portfolio in leaps for pmcc's with low delta weeklies / bi-weeklies, but might do this instead on a slightly higher valued / more liquid stock. I'm not completely worried about the capital gains tax as I am more worried about exiting efficiently and if it is over a year so be it.
What's your opinion on the pros and cons of this vs a pmcc as either way you're just trying to lower cost basis on leap.
I do realize that managing the pmcc is much more intensive, but it's something I enjoy anyways so that's not an issue for me.
Your way of explaining things is better for me than anything else I'm finding Thanks again for these videos and I look forward to the next!!
man great to see you back STRONG!!! 🔥great video I have to watch it now like 8000 times to understand everything! Thanks! Glad you are well !!
Glad to hear you are finally taking tour own advice. I bought long and deep NEM options because of a vid a year ago😂😂and yea it’s working beautifully. Thanks Adam good stuff.
Do you think if you have a chance you could do another video on selling cash secured puts?Walk us through what you look for (Red Days,Support,Tips) if you sell weekly or monthly options?Thanks just have not done my first cash secured put trade.
Love your videos. They have helped me so much !!!!
As always, the one source I feel trustworthy and detailed on how to intelligently execute this strategy. 😀
If I may ask Adam, would you have a ‘boiler-plate’ template for use on Think or Swim? Thanks! 🙏☺️
@@bunnystocksup6505
ITM always coming through with the quality content
I find the problem with debit call spread on LEAP is that it takes much longer to reach a high profit. You will almost have to wait until expiration to get max profit even if the underlying shoots up way ITM.
Another great video Adam, thank you so much for showing us step by step how to open and close the trade! Keep the videos coming!
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Tell him I referred you to him
You are so entertaining 🤣 and a wonderful instructor!
Hey man, absolutely love your videos! Could you make a video explaining your thought process when buying LEAPS and what to look for?
Leaps on CCL NCLH UAL RKT UBER latest exp I can buy, deep in the money are the best, slightly otm is risky but cheaper
I generally roll over monthlies, flipping a bit of premium on pumps to keep me in the green when I can’t afford multi-month leaps
Wow great job man. Thanks I was curious about what happened if you sell call on a leaps and was assigned and ect .. so far just been lucky on my call sell's on my leaps but good to know , its still best to sell to close / buy to close all contracts..
I hadn't have the time to watch this video yet but form experience this guy is great 👍
Thanks for all the great information. I just wanted to ask if I buy a Leap, is it best to still buy it somewhat In the money? If so, how deep should I consider going? How could I figure out the best move. Thanks.
hey man, great videos. love this strategy but I wanted to know at what point do you average down on either a leaps or a long spread? thanks for all the hard work!
Love a good pick me up before monday
Nice video my guy!
Great info as usual!
One more advantage of spreads is, if IV is high, the long strike is overpriced, but the short strike is also overpriced.
I just realized how dramatic your face lighting is haha.
Bro you are funny asf and extremely informative at the same lol! Keep posting! I'll keep supporting! 😎
Since you told me to check out the links in the Description.
I Noticed your "Support the channel directly" link 404'd out.
Could you tell us what option profit calculator you were referring too? I think you forgot it in the description and there are a couple in the app store. Thanks for all you do!
Awesome video as always!
Leaps bender season !!
We love leaps 😁
Nice to see the growth of the Chanel.
Thanks inbox For more information and guardians on how to invest and trade👍
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Tell him I referred you to him
11:07 “Appropriate for...” was waiting for “your risk tolerance” lol
Best channel on the 'Tubes. Thank you.
Great video very informational
With the debit call spread and I am assuming we predicted the direction of movement correctly, it doesn't sound like it is worth the risk since you could get assigned for the short calls and there is no way someone who didn't have enough capital to buy leaps can afford buying the underlying equity once assigned unless I am missing something here.
Hey bro would you mind doing a video on futures? I appreciate you're ability to teach and just see this as something you could explain to those around you! Thanks man
Thanks inbox For more information and guardians on how to invest and trade👍
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Tell him I referred you to him
Did you just pick 60% as an arbitrary profit point to close or do you have a target percentage in mind to close a LEAP/spread?
@@scottreesetradinginvesting7936 Thanks for the reply!
Adam you have always approached LEAPs as a better option vs owning the underline shares so no need to justify anything else. If you can afford 100 shares then you can afford leaps and it’s your position that it is better to own leaps than locking up your buying power to buy 100 shares. That’s your angle… Nothing more, nothing less.
I remember hearing on Options Alpha that regardless of time frame, you will always be taxed on a short-term capital gains basis if you collect premium by selling options. Have you done any research on this?
Options that you write are always short term, meaning that in this example the short leg that you took the fee from, that fee is short term, full stop. When it comes to buying and holding it usually falls in line with how long you hold. As is typical with tax stuff there are caveats to most things like using a tax advantaged mechanism to do the trade (like an IRA), or if the option is a nonequity option or a dealer equity option.
This probably made things even less clear but welcome to the US tax system.
@@dhammer5842 if im understanding correctly you are saying that the fee from selling the option is taxed at short term but what if i closed out the short stick early and let the long option run over a year and then sell it. Would the profit from the long option be taxed at long term tax?
@@themightyantgaming2656 that is correct.
@@dhammer5842 his point was asking that because the long call is being used as option collateral to sell short dated calls against it it will be taxed short term. It’s essentially just a diagonal spread.
@@abthemlguy Pretty sure this is not true. The long call is a separate entity though form the brokerage's standpoint it could be seen as collateral, but only if it is a covered call. The Long Leg is unrealized value, the short leg's fee is realized capture, if the short leg goes bad you book a loss, but in this scenario that loss is offset 1:1 by the gain of the long leg.
Clicked so fast 😍😍
I have some leaps with an expiration Jan 21 2022. Would this be considered a "long" time period for a leap? (7 Months)
A traditional leap is supposed to be one year or longer. Some argue it’s not a leap at 7 months.
BGFV up over 70% within the last month and a added $1 bonus dividend if bought by today. Great recovery play!
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Love the channel.
Thanks for all this content 👍
Great info
If you are in a position where your underlying surges and the spread seems unfavourable, just btc your short position and ride your long call, providing you have the capital. That way you won’t be crying if the price continues that upwards trend. Edit: you said it at the end. My bad.
We love LEAPS!
so crazy...i was thinking exact same thing last night and did a youtube search on it and didnt see anything then i searched again this morning and WTF here it is
LEAPS also mitigate the effects of IV and theta which helps too
i bought a 25$ leap for lcid , it will take 30$ to breakeven expiring may22. is it a good buy?
great vid
There's another use of LEAPS I'm not sure you've considered... A LEAPS is also a way to lock in a price point I want to buy 100 shares at while I set back money for those shares. Turning that LEAPS into a long term buy and hold should mean that LEAPS isn't part of the much smaller "high risk" pool on your portfolio but part of your low risk long term pool. It's also lower risk than buying the stock outright because if the price drops in the shitter before you exercise, you can just not exercise and you only lose your cost basis on the contract, selling CCs all the way down to reduce that cost basis.
that's the whole intention/purpose of call options lol
Ive bought several OTM LEAPS that the combined deltas add up to over 1, will memick the actual stock movement, at a discount to the stocks price.
@@scottreesetradinginvesting7936 yep, I’ve done both. Ive done the multi LEAPS for earnings plays. Only hold a few days or a week. Done those Deep ITM LEAPS plays too.
Question what happens to the leap if the underlying company has a stock split during that time period. Will you lose or is it a benefit?
Great content! I've learned so much about options since I found your videos a few days ago. I wish I'd learned about LEAPS sooner. I bought a contract with a 0.76 delta on ENPH the other day as my first one mostly because I hadn't learned a lot yet. It was a pretty juicy dip though and I'm already $700 to the positive. Hope that trend continues
Update on your play?
@@ESMDto239 I sold it with $2k profit when ENPH couldn't get over $145. I intended to rebuy at $137, but I missed my chance. Oh well. I still have shares. Nobody ever went broke taking profits.
I bought a similar PLTR LEAPS that's doing really well. It's got a 2023 expiration. I should have done a longer expiration on the ENPH option. I probably wouldn't have sold it if I had
@@tsmall07 grats dude, thanks for the reply
Looking for feedback and/or if I did this correctly. On 2021-05-25 I bought $F $12 Calls exp. 2023-01-20 for $3.25/option. The options were barely ITM by 0.91 ($F was @ 12.91) when purchased. Delta is now at 0.7338. How "textbook" of a LEAP was this choice or how far away from ideal was it?
Why is a portfolio of high delta LEAPS with year+ expiration riskier than porfolio of stocks?
@@grahamstephan14 Yeah, lets. I'll start - fuck off.
Yessir!!! Finally!!!
@Inthemoney your support the channel link isnt working, also I can't find the link to your debit spread video. Thanks
Boy I wish I thought of buying LEAPS call spreads instead of just buying calls, my short legs would have printed! Could have closed the shorts offsetting most of the open losses on the longs which I could hold at a much lower break even... One thing I love/hate about financial markets is that it's one of the few areas in life where hindsight actually is 20/20🤣
@@scottreesetradinginvesting7936 I've actually never used a vertical spread, but I've also never thought of one as long term hold. The disadvantage about it is that it probably wouldn't work to back a short term short call, at least not while the long term short is open.
@@michaelgreen6974 i think what you might want to look into is the PMCC, buy a long term LEAP, sell short term CCs against it. ITM made a video about it and i highly recommend you check it out.
@@themightyantgaming2656 indeed, my looser LEAPS calls were for PMCC. Now I'm stuck holding, selling for realized loss, doubling down while they're down, or shorting low K/risky calls against them and being ready to roll... I chose the latter of course... This season is all about rolling for me I guess.
Cash secured put -> Covered calls (aka wheel) -> finally make enough premium to use on a LEAPS...REPEAT
can't do cash secured put without level 4 options even though it's one of the safest strategies
@@codesymphony cant you just lie to trade level 4 options.
@@darklight6921 no its based on how much money is in your account
Whenever youtubers use "Capital gains tax rate" as a con of a strategy I get super happy I live in NL 🇳🇱
Not a worthy trade off 😂
Thanks for my cheat codes.
Thanks dad
Is it as important for the Sell leg to be highly liquid like the Buy leg?
Thank you!
So what’s your take on LEAPs vs just going long stock?
Stock never expires so you can always sell calls against it, is how I see it
It all depends on your Buying Power. If you can afford the shares and prefer that you can. Lower return on investment, but less risk essentially.
26:54 Adam says I love you.
So my leaps are extremely volatile and can be down 30% next day
With this strategy, what are your thoughts on buying back the short leg at some point prior to expiration? I see this as a potential way to “uncap” the spread - leaving me with JUST the long call I was looking for when I bought the spread. Time decay seems like this works in our favor (depending on where the intrinsic value is at that point).
Thoughts?
@@bunnystocksup6505 do not add this dude on cash app. He’s fake.
awesome video
If your debit spread is that deep in the money why not just let it go to expiration?
Why not do put credit spreads instead? Have theta work for you.
i'm curious. What's your opinion on the difference between your LEAP call debit spread with a poor-man covered call? your LEAP call debit spread seems 0.6 delta Long yr 2022 and around 0.4 Delta write/short year 2022 (long dated). whereas PMCC is deep ITM 0.9 Delta Long yr 2022 and maybe 0.2 delta June 2021 write/short?
from what i understand, i am a noob tho, is that doing the spread is to buy the LEAP cheaper. that is why you sell a call at the same exp date and also with the smaller delta. Doing a LEAP for a PMCC seems like you want to do multiple short term CCs(since they are going to be short term) against your leap so you can make some extra $$. You want your PMCC LEAP to have a lot of delta so you can profit from the LEAP itself plus whatever you get from your CCs. At least that is how i understand it.
@@themightyantgaming2656 thanks for your thought process! I still seem to lean towards buying deep ITM at .9 delta and then write short at each month. My reason is that, if the stock $ drops within that yr long LEAP, my deep ITM (.9 delta) will also drop to ITM (.6 delta). whereas his current method is buying at .6 delta. The chances are higher that it'll be OTM at expiration. what do you think?
If you long leg is super deep ITM and doesn't have much liquidity, could you consider rolling your more liquid short leg deeper ITM prior to close on expiration day to avoid pin risk? I figure the extrinsic value would be minimal at this point.
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I watched some leaps videos last week. I decided to buy leaps for RIOT when it was at $33/share it’s not looking good man lol
I did the same thing 😅 I sold them and bought puts tho and made some money back. I'm waiting it out now I think it can recover if bitcoin does
That's kind of a dumb idea lol
Ouch!
I got 7 months til expiration I should be decent hopefully
Stop following memes
I'll just keep wheeling I'm not there yet.
@@scottreesetradinginvesting7936 it's not the most capital efficient way of doing things is my main line of thought was thinking about writing short options against leaps but I want to have a bigger cash pile before doing synthetic covered calls.
@@scottreesetradinginvesting7936 also a valid point but I generally wheel ATM weeklies assignment an excercise are pretty common events for me I'd end up actually using the margin and paying interest. I would have to change the way I write the options to avoid losing the premium I'm scalping to interest. Though to do the synthetic covered calls I'll need lvl 3 which is a margin account by default so either way it's coming. I have a level 3 brokerage account already with Robinhood for spreads but I'm never putting more than a grand in there.
Bro Adam where u been??
Should I exercise my long call positions if there is a split that comes before the expiration date?
25:32 creepy alien noise 😂
Do a video walking us through the OPC app 🤓🤩
Then save more money?! No reason to take that much risk if you can't afford 100 shares as it is.
Man i would really love to have a beer with you.