LEAPS Are Supreme
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- Опубліковано 27 вер 2024
- 💎Free Stocks, My TradingView Profile, and Social Links: linktr.ee/inth...
Outro Song: • Urban Lullaby - Jimmy ...
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Most people have a beer or two and start thinking about the ones they've loved the most. Adam thinks about Leaps.
He loves LEAPS
I've made some of my best plays after a few beers 😎🍺
Let's start the term "LOTA" for Leveraged Out The Ass. Like: That guys account is totally LOTA
Adam thought about leaps, then he thought about telling us. I have to say this is one guy who doesn't need youtube to make money, and I really appreciate his breakdowns on options.
Because that's who he loves the most
I really like how your channel has no marketing gimmicks or filler info its just purely straight to the point with valuable information.
that’s why i love it
Did you say 10% of the port into leaps? Oops. Thought you said 100%..
This is me with my portfolio but unironically
@@logknot7867 same lol
@@logknot7867 Same
honestly it still better than scratch offs or a visit to the casino.
Same. I love LEAPS and PMCC lol. Even during corrections i just hold them. I have LEAPS on AAPL that i just bought them. My break even is 134.18 by June 2022 lol.
I can definitely risk that for Apple 😂
You had me at “You could be a complete donut”💀
He must watch a lot of Hell’s Kitchen
Im hungry now
At 10:44 Adam gives one of the best diamond hands speeches I’ve ever heard! “Cutting your losses is stupid! We don’t cut our losses! We let our LEAPS die with honor and dignity!”
F•O•R C•R•Y•P•T•O G•U•I•D•I•A•N•C•E A•N•D I•N•V•E•S•T•M•E•N•T
W•H•A•T•S•H•A•P•P.....
+•1•6•0•1•3•4•8•7•7•2•0•.....
@@pínnedbyÇryptoBén 🚨SCAM ALERT🚨
@@pínnedbyÇryptoBén Look at 1st Corinthians 6 : 9-11, and Revelation 21:8. The Bible says liars and thieves will be tormented in Hell for eternity. You will stand before God one day and give an account for what you have done. Since you’re trying to scam people out of money, what will you say when it’s your turn to be judged by an infinitely holy God?
As an options trading UA-camr, this is the only option channel I watch because I'm still learning when I watch these video.
Fuck Ya! My Boy Henry! Plus, if you're DEEP ITM you can sell some nice Covered Calls on the Leaps. Profit all ways
This dude’s the truth man
This is the way
i literally unsubbed to u because of ur annoying as fk thumbnails
checkout the come up series.
The only downside to leaps is no instant gratification. Plus, for the faint of heart, it can be torture watching the option go up and down in value daily knowing there's an expiration date (even if that date is far off into the future).
I am constantly AMAZED by the value of the content on this channel. To give this information so freely, and openly is the mark of someone I'm happy to know and follow. You're a stand up guy, and I appreciate what you've got going. You're the anti-guru.
F•O•R C•R•Y•P•T•O G•U•I•D•I•A•N•C•E A•N•D I•N•V•E•S•T•M•E•N•T
W•H•A•T•S•H•A•P•P.....
+•1•6•0•1•3•4•8•7•7•2•0•.....
@@pínnedbyÇryptoBén the
As someone who buys OTM weeklies I felt this video. TY sir you’re a gentleman and a scholar and your videos are insightful and helpful
ooooof. single leg out of the money weeklies.... the inverse narrative still alive and well making the rich people richer :D
why are OTM weeklies bad?
Ladies and Gentlemen, may I present the easiest to understand UA-camr when it comes to trading techniques. Adam breaks it down so easily
Cuz he's the GOAT. 🐐
The best part about LEAPS is that you get to sleep easy lmfaoooo
Lmao ain’t that the truth!!!
He even said don’t put in more than your willing to loose lol
Facts
I haven't slept in years
Oh what I would give for sleep
Your desk set up is clean brother
🚨🚨scam alert🚨🚨🚨
Adam, I don't know how many times I've commented saying thank you for the information you provide on this platform. I've learned so much about options from you. You're a rare bread. No BS. No course marketing. Thank you x 100!
An excellent example of a LEAP. Thank you for making it clearer!
This is how I'm going to start diversifying.
I've traded options once recently for the first time, and got crushed by theta.
I'll be buying one or two contracts into leaps. I had planned to do this after the theta situation, i didn't realize there was a name to this.
Going down with the ship. I like this approach to letting LEAPs expire
You have been the best source of education on this market in the entire internet. Thank you.
“With leaps - We’re not part of the high frequency above the shoulders mustard shit group”
Poetry. I love it
I agree with you 100%. I decided a few months ago to not purchase any calls that expire in any time frame less than 6 months. Much less stress
The V recovery was a very rare event and there's no reason you can't re-enter your position when the dust settles from a dive like this. Like the idea and instrument; just not crazy about the risk management strategy. Great video.
Roll the leaps every 6 mo. on 2 year contracts. Theta is like nothing for that time frame, it's insane
Not getting the tax advantage of holding for a year here though
@@IAMJERM lol this guy pays taxes. Haven’t you heard of writing off losses?
@@IAMJERM That is true. Would need to do a good bit of math to figure out at what point it is worth it, especially if using an LLC for taxes. I don't look forward to calculating that one day lol
@@InfernoPhilM lol you have losses?
@@InfernoPhilM don't lose enough to use this strategy consistently
My Ford leaps for 3/18/2022 Delta is 0.97 lolololol $5 strike. Thank you Adam.
This video makes me feel much happier about my nio leap.
About to pull the trigger on one too. Thinking of going the distance to 2023 @27. 🤔
Send it
Agreed. Sitting on my NIO leaps rn
Nio leaps make me feel horrible and optimistic at the same time
Got a Twitter leap yesterday. Aiming for that 50% return :)
These Leaps must be in a world of pain right now. Leaps are not cheap either....Not too bad if only 10% of the portfolio is in leaps but if you have 30% of your capital divided into three stocks all using leaps - that it is probably at best very worrying right now.
Very true. That’s why you never over-allocate.
Gives a new meaning to "diamond hands"
I'm new to selling puts. Made some nice premiums and none are ITM. Expiring 05/21/21. Never heard of LEAP. I'm excited to learn this strategy. I have no idea how to even start. Gonna watch this video over and over. Thanks for making videos.
I got into LEAPS because of you, ports up 20% today too! Back in the green baby
Wtf were you in that got you 20% today 🧐 I was barely green, 90% of portfolio was red. Luckily the greens were bigger
@@carsonhunt4642 i was gonna ask the same, market took a poop but must be good strikes.
Sooo I buy a itm or otm leap call option?
You are right on, after 20 years of trading, almost all I do is buy long dated calls,...LEAPS on good but beat down commodity stocks also now some of the Tech's. When oil was sub $30 a couple of years ago I loaded the wagon with WTI pure plays, some like OXY, APA, MRO have gone 20X. Did the same thing with Iron Ore thru VALE, also ET I got in with LEAP when it was $8.00. My biggest problem is I get out to damm early. You delivered a great video with enthusiasm & conviction. Stadtmueller Von Texas
Adam, will you please do a video on rolling options? Would be great to learn the advantages of rolling CC & CSP, when the ideal time prior to expiry is, how you calculate your ROR for each trade and if you could show a comparison of rolling options vs letting them expire. Thanks bro, you seriously have the best options tutorial videos!!! 💥💥💥👊
How is it that this video has half the views that you have subs, this is literally the gold standard on your Channel, I have probably watched it five times.
Man I am loving the thumbnails in the past two months
Good video. the only thing I would add is, like you said buy in the money but buy a strike with either the most or a lot of open interest or the you can get pretty screwed by the market maker. You can also sell calls against your position to lower your cost basis. You can also scalp Gamma. Look at your LEAP as 100 shares. Lets say the stock makes a nice move up, you can short 25 share for example... if the stock keeps going up, so what, you're still long 75 shares, but we know stocks don't go straight up so when the stock pulls back close your short and scalp a little money... all the while without ever touching you call. My goal with LEAPS is to try and reduce my cost basis to 0 and give myself a freebie
“You could be a donut” “you could be the biggest idiot of all time”
Check and check lol
Light bulb went off after reading a book called INTRINSIC that talked about using LEAPS to retire early. This video (which is also awesome) confirmed for me again that LEAPS are really supreme!
Just buy deep in the money on leaps.
thanks for this. There is not much practical info on LEAPS on UA-cam. I like deep in the money SPY LEAPS and then roll them. You are getting about 99% delta and maybe 3:1 leverage on cash. Using only 33% capital, I get pretty much the same as 100% in SPY but a whole lot of cash reserves to sleep at night. Also, the boost from IV gives a little crash protection...convexity is king!
@inthemoney would you consider doing a video on endgame scenarios for LEAPS that are doing well? How do you book the profit on your winners?
You can sell to close (assuming there's liquidity) at any point before expiration, or you can exercise and buy your 100 shares at the strike price, also at any point before expiration.
All I heard:
-HODL
-50% gain
- Long in the money
-Buy before the crash and then during
- don’t over allocate
- Exit Strategy? Never heard of her!
I’m pumped up man!
Amazing content, well thought out and your delivery of information is just impeccable
i probably have the best example of owning a tesla leap that went horribly wrong
Spot on why I love them, they are basically a tree that needs no water & if it produces fruit great, if not oh well.
Lost it totally when you said "Jeromey-poo."
Finally someone that shares my views.
I use LEAP options but I buy DEEP in the money.
LEAPs and selling puts are my only options trading.
Take it to the next level and explore DEEP in the money LEAPs.
I WILL sell LEAPs under certain conditions. I preemptively set limits order to execute if the option has significantly over performed at the 6 month, 12 month, or 18 month.
Not only that, having those limit orders on the books have allowed me to get filled on really stupid IV jumps.
Keep in mind that LEAPS usually have pretty wide spreads. That's the only thing I don't like about LEAPS, but the leveraged returns are worth paying the spread imo.
@@scottreesetradinginvesting7936 lol good point
Which ETFs do you find have the smallest spreads? That's what's eating into my profit as well
Something else to consider is giving yourself 1/3 of the time to get out. For example a 2 year contract look to exit around 18 months. That time cushion will make you and save you a lot of money. S
LEAPS are the way to go. Time to increase my leverage positions.
LEAPs are like buying stock over time and getting paid interest to do it.
So if you aren’t supposed to sell LEAPS, when should you take your profit? Or do you hold until expiration?
Great video! Enjoyed the process thinking it all through.
DUDE!!!! leap options season it coming this july!!!!!!!
I have to start studying your video!
Personally I'm into selling leaps. Covered calls with years to expiration while a stock is at an all time high usually give you a good amount of time when all you need is 1 red day and you can collect thousands in premium upfront
So on a red day the premium of that option tanks and you buy it back to close?
why not 30-45 DTE?
How long do you typically hold your leaps?
At least over a year so you don't pay short-term capital gains tax.
Hey thanks for your videos. As a new trader getting wrecked on options the last 3 months, since ive found you i have a better approach and have done well on options since.
it really helps
“Not a lot of people are talking about it”. Because we have been doing it silently for years and here you are telling everyone about it.
*Despite the economic crisis, this is Still a good time to invest in stock and Crypto.,*
The rich spend less and invest more
Investing in these economic crisis will be one of the best thing to do,
You're right I think stock and Crypto are the best to invest right now,☺️
As stock's are good but crypto is better.,
I wanted to trade crypto but got confused by the fluctuation in price.,
Whew, thank God it's the weekend. I sold my "LEAP" after realizing I can sell options (yup, I just realized I can sell options and don't have to hold on to it till expiration), but then I watched THIS video again!
Cancelling sell and waiting for SNDL to go up in....the next 3 months.
Thanks so much. I made $$$ today in options. You’re the best at explaining all this. I greatly appreciate it.
Blessings,
You say not to, but definitely putting all of my tiny account into leaps.
How else can you get to the same leverage as someone with 200k and 20k in leaps which is only 10% of their portfol
200 all in
Above the head mustard shit right there
2k portfolio with 80% in leaps. 🤷♂️
Bruh, 80% of my IRA is in a single contract. AMZN 2400c, Jan '23. I bought it as a 2500c in Jan with a Jan '22 exp and sold CC's above my break even. Made 2k a week just selling calls. When it dipped hard in March, I used the cash to roll it down to 2400 & out to 23. Leaps are the cheat code. Once the Jan '24 options are available, I'll use the cash from CC's to roll it down & out again, if they don't do a split before then. Go deep, like .95 delta and at least a year out on something you really believe will increase in value, never sell a call below break even, and it's hard to go horribly wrong.
Rolling 4’s!! Leaps are the way to go!!
I've been doing 5-10% into leaps last few years with MSFT, V and AAPL. Been big time winners, 2-6Xers.
Nice bro
Makes you think maybe you should've allocated more
@@ChaceBonanno Yes, thought the same but could've gone the other way also, no guarantees.
The advantage I've found with LEAPS is you can survive market pullbacks and be patient. I saw huge drops in fall '18 and then covid but still came out strong on the back end.
@@jdsmith4472 how far out were your leaps, JD, and how 'deep' ITM (3 or 4 strikes deep ITM)?
@@Siwelynot I go the farthest out I can, usually about 2 years. I usually aim to invest around $2,000 or so per option, so just look for the appropriate strike price and gauge whether it's reasonable.
I've looked at high growth stocks like SQ, ROKU, even MA and the applicable strike price was so high I didn't buy.
So LEAPS are deep in the money calls that are 2 years out to expiration? Would you consider deep out the money calls that are much cheaper at the same expiration date as LEAPS too?
Technically, any contract with an expiration more than 1 year out is a LEAPS, regardless of ITM, ATM, or OTM.
The best way to leverage your money.. can't believe more people aren't doing this
So what about buying bullish leaps and selling puts OTM combined?
"You could be a total Donut", love it!!!
I appreciate your channel and how honest you are!
Do you continue to sell your LEAPS and buy a replacement contract with a further expiration date in order to minimize extrinsic value decay?
wait, so if you never sell your leaps.... are these supposed to expire? and be exercised?
@@scottreesetradinginvesting7936 thanks for the insight!!
Hey Adam, great video.
A few questions I've been debating about using LEAPS and selling Poor Man's Covered Calls against the LEAPS: IF your sold calls go in the money, aren't you kind of screwed? The calls you sold going to be more sensitive to vega and gamma (of course) than the LEAPS (which has minimal extrinsic value and thus isn't much affected by vega and gamma), meaning they will expand in price MUCH faster than the LEAPS, making it so not only you cap your upside in intrinsic value (as any covered call would) you also lose far more in extrinsic value in the calls you sold than what you gain in extrinsic value on the LEAPS. There's an even bigger problem - the LEAPS will have a lot of slippage because the expiration is so far out there will be low liquidity (relatively), meaning if the expiration date for your sold call is approaching you may need to sell your LEAPS for an unfavorable price to cover your costs on the sold call.
Having said all of that, if you have a LEAPS and you're doing PMCCs, should you ever close the position or just roll the covered call and eat the loss because of all of those factors?
Great questions. What is a poor mans covered call though?
@@spoonman73 A calendar spread. ex: Apple is trading at 160$. I buy an aapl 160 call that expires in January of 2023. Then sell OTM calls against at a shorter term month. It can bring your cost basis down, but personally I think it caps your gains. You could always buy back the option you sold for a loss, if you feel as though the stock will continue to trade higher.
Just started with leaps a month ago and wanted to find out more. You, sir, are a godsend.
This is such an underrated strategy
New to the channel. Great stuff but you never say when you sell the leaps. Do you wait until expiration and exercise them or sell them sometime before that?
u can sell them whenever u want if profitable. dont get too greedy tho
If he was to exercise he would only make the 30% return from Microsoft whereas if he sold the LEAP he would make the full 170% am I correct?
Ok, so total Noob question warning! I started dabbling with options about a month ago selling CCs and CSP (Wheel). I’m liking what I’m seeing about LEAPS, but one thing no one really explains and I’m kinda confused on is how you make money with LEAPS. You bought it (paid out money) so if it expires, how to do get the money back you bought it with plus that 174% return. How do you realize a profit on a LEAPS? How does that 174% return put money back into your account at expiration? I’ve seen using them for a PMCC, but that confuses me too as to what happens if your short CC gets assigned. What happens to the LEAPS in assignment of a PMCC and where is the profit there? Hope these Q’s make sense. Thanks for all the great content encouraging us to keep pursuing that pot of gold 🌈
this is so good.
Qq from a beginner: The more in-the-money a Call option is, the more expensive it is. How do you balance this with less in-the-money options if you are trading on a stock that you think will go up long term? You can put less money down or buy more now if you buy less in-the-money. Thanks for the great channel!!
@@scottreesetradinginvesting7936 Agreed or if you're willing to buy a 75 delta maybe just buy 45 shares worth of the stock?
@@scottreesetradinginvesting7936 yes you are correct, that’s what I was getting at. Sometimes buying these super deep ITM options with really high deltas make me scratch my head and say why not just buy the stock with less shares.
I forgot the portfolio allocation recommendation, so I came back to watch the video. Adam recommends no more than 10-15% allocation to LEAPS. Absolute maximum at 20%. Noted. Thanks.
I remember when I bought a Pltr leap. I just remembered I still have it ⬇️
@@scottreesetradinginvesting7936 hey that was a pretty good guess
the worst thing you could do is not buy at the peak but have a LEAPS that expires in the dip
Your content is so insanely useful for pretty much anyone who understands the concept of currency lol seriously man keep it up
One reason not to do LEAPS is margin impact - if you buy a 100 shares of AMZN, Interactive brokers only take about 15% of margin requirement.
If I buy an ITM Call option, it is 100% so return on capital used may be much better with the stock itself in some cases.
Buy a straddle with 66 weeks to expire A.T.M. sell weekly short call and short put for about 2%-4% a week. repeat or roll as needed.
How deep in the money do you buy it? At what point do you sell it? This is of course hindsight trading. Anyone can win that way. The market now is overbought because of the low interest rates. I would only buy call leaps when the company at this moment in time is a good and has a cheap stock price compared to its intrinsic value. Like Alibaba for instance.
miss your voice and teaching style.. listening to old videos while working just cause...
hope you are feeling better my dude!!
We’re working on it! Miss making videos so much. Thank you!
You the man, I been using leaps for awhile without even knowing they were called LEAPS! hahaha
Definitely LEAPS are GO to options. But curious to know strategies of Leap sellers and how do they play ? Any dud knows that in the long run the markets go up for all tech and large cap stocks.
I'm actually learning something from this guy. Very seldom do I learn good credible information on UA-cam.
So when to sell the LEAP for profit, let them expire in the money? also how long do you prefer 1 or 2 years? thanks this is good for PLTR LOL!
My AAPL leap lost almost 40% today. Still holding and selling calls against it.
Which one is this?
@@laxunderscoreaddict 115 call that expires Jan 21, 2022.
I Have 4 leaps (MSFT, QQQ, DKNG, and TSM) all for 1/20/23 down a total 11% today
Did you buy right before earnings?
@@huey1153 Do you typically go for a certain amount of Delta on the contracts?
Never stop dropping content bro
Totally agree with you and I think they're a great place to sock away your money as well as a good hedge if you decide to sell the same strike price but with less extrinsic value. It reduces their volatility when you have them as leaps
He was mentioning leverage, so was he specifically referring to OTM LEAPS?
Leaps and Credit Spreads!!!!
sooooo... when do you sell said LEAPS? asking for a friend.
Yeah Adam. What is your exit strategy? Do you sell at a percentage of profit? Do you wait at least a year to avoid short term capital gains? When do we see the return?
Also wanna know this.
@@jeremybalescreative what's an exit strategy? 💎👐
@@victor4091 Brilliant. Yes. 💎👋🏼 to expiration. Thanks not Adam.
@@jeremybalescreative that's what I was wondering. I think he said somewhere in his initial leaps video that he recommends to sell the options several months before expiration, but if there's not enough open interest, you can always exercise. He explained this, again, I thiiink, because that's when theta really starts to eat away at the value of your option right in the last month before expiration.
Obviously it depends on your goals, that is, what return you are comfortable with taking and what risk you are fine with. When you are buying a LEAPS you're giving yourself time to be right, but conversely that is also time to be wrong. Make use of that time you bought but also make an educated guess on the underlying on whether or not they might experience more growth with more time or might be slowing down; at the end of the day, a LEAPS is a gamble with mitigated risk (longer time till expiration).
Dude, thank you for making these videos. I just subscribed! You're great at explaining things and seem very chill. Keep it up!
This is such a good video. My leaps from a couple weeks ago tanked with last week's correction. I keep watching this to remind myself not to 'panic sell'.
I’m glad that you are one of the few people that mention long term capital gains and short term capital gains taxes. So many people rush to trade without any knowledge of this and are baffled that half of their money is taken away when tax season comes around.
It's better to turn leaps into debit spread if you are down or up more than 50%. If down you recoup some loss and if you are winning you save gain. The only problem is you cap your gain.
Adam, I am curious if I can use LEAPS for leveraged etfs and avoid some of their downsides? They usually have very good 5 years charts and they are very liquid and cheaper than popular etfs.
Options on leveraged ETFs often have higher extrinsic value, so you're paying more upfront for the leverage (and for good reason, they can easily explode). If you're already okay with buying that many shares into a leveraged ETF, a leap can be a great tool, but just remember that you're paying a little more in terms of extrinsic value for it, compared to regular old SPY.
I set up several leaps I hope they pay off in Jan ‘23 but for now I’m switching to crypto and kinda doing a buy and forget strategy. 100$ darts in every direction..only gotta hit one bullseye 🎯
Leap like you’ve never leapt before
I am getting wrecked on TAN Leaps right now