This LEAPS Strategy Made Me $119,649 (3 Simple Steps For Beginners)

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  • Опубліковано 6 лют 2025
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    When trading Options, you want to have a well-balanced Options portfolio that consists of bullish, bearish, and neutral strategies.
    And if you want a bullish strategy that can help you capture unlimited upside potential profits, then you want to use LEAPs.
    In this video, I share with you my LIVE trading positions and P&L and show you my exact LEAPs strategy that has made me 6-figures in profit.
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КОМЕНТАРІ • 255

  • @malceum
    @malceum 9 місяців тому +26

    Timing still matters with these. It's best to do it after a bear market or correction. I recommend starting with a spread if you are entering near all time highs. If the market dips, you can close the short LEAP call for a profit. If the market never dips (extremely unlikely) then you've capped your gains. Small price to pay for lower risk imo.

    • @jrtill5585
      @jrtill5585 6 місяців тому +1

      What would be a good spread on say qqq or a tech company? 10 points? Thanks

    • @azatiku
      @azatiku 4 місяці тому

      u need at list 25 k to trade options not everyone has it

    • @tncloyalsaint9801
      @tncloyalsaint9801 Місяць тому

      ​@@azatikuwhat you buying if you need 25k :D

    • @azatiku
      @azatiku Місяць тому

      @@tncloyalsaint9801 it s the rule to trade oprions u need 25 k me personally i have arm nvidia tesla

    • @azatiku
      @azatiku Місяць тому

      @@tncloyalsaint9801 i got some Nvidia some Arm some Tesla

  • @truthwillalwaysprevail
    @truthwillalwaysprevail 7 днів тому +4

    You have explained Leaps better than anyone else on UA-cam. 1st what kind of stocks or ETF to choose for Leap and then which strike and DTE to choose by explaining the effects of extrinsic value delta and theta. Thank you
    It would be very helpful to explain how you would manage Leaps if it goes against you. It is the risk that needs to be evaluated as well because this is where people panic and lose their life savings

  • @race-abolitionist
    @race-abolitionist 5 місяців тому +6

    This is the best video about LEAPS on UA-cam!

  • @optionswithdavis
    @optionswithdavis  9 місяців тому +2

    Get My Strategy Blueprints For FREE:
    1) The Options Income Blueprint: optionswithdavis.com/blueprint/
    2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/

  • @PatrickHoodDaniel
    @PatrickHoodDaniel 3 місяці тому +6

    This is really helpful. Thank you!

  • @nizarladak4553
    @nizarladak4553 9 місяців тому +14

    This is the best explanation LEAPs todate. Thanks Davis!

  • @anupshah9779
    @anupshah9779 4 місяці тому +1

    Hi Davis, it was good explanation how to set up this strategy for the BULL outlook. Can you share how do you incorporate BEAR and NEUTRAL outlook along with this as you mentioned in the beginning of the video. If you were to buy both BULL and BEAR out look option strategy they both will cost around same and hence while one i profit the other will be in equally loss. If you have BULL, BEAR and NEUTRAL then one will be in profit and other two will be in loss.

  • @markforno
    @markforno 9 місяців тому +7

    What if the trade is not working the way you intend. do you have an exit strategy? thanks 🙂Love your videos 🙂

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +6

      You must always have an exit strategy 🙂 Either take the loss or if you're still bullish then consider rolling.

  • @dirtmud84
    @dirtmud84 11 днів тому

    Davis, Thank you for your content. You are a great presenter! Question...Do you (personally) sell covered calls on your underlying that you own from buying LEAPS?

  • @AdamZMusic
    @AdamZMusic 4 місяці тому +5

    This is my favourite video by you Davis. This is the most simple way to make money from options in my opinion and your explanation was excellent. Thanks for the vid

  • @jorgedunbar6745
    @jorgedunbar6745 Місяць тому

    Great video
    Can you make a follow up video to this breaking down for different account sizes(small,medium etc)
    Also when to buy ITM ATM OTM
    Thank you

  • @samchen12378
    @samchen12378 19 днів тому

    Thanks Davis! When trading deep ITM option using LEAPS strategy, do we still need to worry about the implied volatility crush?

  • @CTM_Never-Give-Up-Giveaways
    @CTM_Never-Give-Up-Giveaways 2 місяці тому +1

    Thank you so very much for your exceptional explanation of LEAPS. I've been looking and looking for a decent explanation and all I can say is THANK YOU! I also downloaded your materials and I will study them closely. Thanks again.

  • @BornRiders
    @BornRiders 5 місяців тому +2

    Wow thank you! Can you make another video showing us you picking a live stock?

  • @scottmarshall4389
    @scottmarshall4389 6 місяців тому +6

    Thanks for the video. How hard is it to close the LEAP option when you are so deep in the money. Are there any buyers?

    • @princedonkor44
      @princedonkor44 3 місяці тому +1

      Yah I was thinking the same but this is why it is important to choose stocks that are popular and high in volume because other people will also do leaps just at a different timesframe.

    • @thatpointinlife
      @thatpointinlife Місяць тому +1

      It all depends on the liquidity. Only trade in highly liquid underlyings. Otherwise, you might have to sell for much lower than the mid price of the B/A spread.
      Always check the average volume of the underlying asset and the open interest and B/A spread of a LEAP you're thinking about buying BEFORE you buy it.
      If it's illiquid, you'll be able to buy it for mid price, but you'll never be able to sell it for mid price.

  • @adnanrehman8039
    @adnanrehman8039 6 місяців тому +1

    Great video Ty. Can I ask have you thought about using option strat? Maverick of Wall Street uses it

  • @MD-gk9os
    @MD-gk9os Місяць тому

    Thanks so much for this explanation! Are leaps cheaper on a red day?

  • @jimgeyer3475
    @jimgeyer3475 9 місяців тому +8

    Outstanding Commentary!!! Priceless!!! Thank You!!!

  • @glennirwin4710
    @glennirwin4710 9 місяців тому +12

    Probably your best video to date. Good explanation.

  • @bharatboy10
    @bharatboy10 9 місяців тому +2

    Delta equals the number of shares you control so 80 delta means controlling 80 shares worth of exposure…can you please confirm as your video stated 80 delta equals 100 shars of exposure? Thanks

    • @jasonc934
      @jasonc934 9 місяців тому

      Delta refers to price movement. I the underlying stock moves up or down by 1 point, then a .80 delta means it also moves up or down by .80 cents. You want to choose leaps that mimic the underlying equity's price movement, thus choosing 80 delta and up.

    • @aaron6806
      @aaron6806 8 місяців тому

      Any options contract involves a block of 100 shares, but the Delta number indicates what those 100 shares act like. So yes, 0.8 Delta means your position acts like 80 shares, wherein the price moves 80% of the move in the underlying.
      Saying that the delta directly indicates the number of shares you control is technically not correct, but I think it is a great way to visualize the relationship between the options contract and the underlying.

  • @forgotmypassword2804
    @forgotmypassword2804 4 місяці тому +2

    Do you have a video on covered calls with leap? Thanks

    • @optionswithdavis
      @optionswithdavis  4 місяці тому +2

      If you mean PMCC here you go:
      1) ua-cam.com/video/k26E1J93PA4/v-deo.htmlsi=_UGP_LX_6zbnm7nR
      2) ua-cam.com/video/mgYBglXqgpA/v-deo.htmlsi=Yi0v3-4nuuhMm6Er

    • @forgotmypassword2804
      @forgotmypassword2804 4 місяці тому

      @@optionswithdavis thank you . I posted a question regarding pmcc covered calls expiring deep in the money. How can one not lose the leap call option and not be assigned ? Thanks

  • @KyleTran1
    @KyleTran1 4 місяці тому

    Just wondering, do you use the beta weight SPY or NDX to see how bullish/bearish you are compared to those?

  • @pete5252
    @pete5252 3 місяці тому

    Great Video, thank you. Can you help me understand why I would roll a winning Leaps down again? Why would I go from a delta of 1 to a delta of 0.8? to secure some gains, I see that, but what are other reasons to do so? Thanks :)

  • @Phil-wt3uf
    @Phil-wt3uf 5 місяців тому +3

    Quick question - is it better to do LEAPS in good companies that get slammed down from recent news that have high probability of rebounding???

  • @MarkStern-ug1fp
    @MarkStern-ug1fp 6 місяців тому

    Can you sell covered calls on a put leap option?

  • @michaeltaylor3588
    @michaeltaylor3588 7 місяців тому +3

    Thanks. Good detailed explanation. Narrative mixes up "dte" with "delta" at around 15:42.

  • @Bitsurf24
    @Bitsurf24 5 місяців тому

    Beautiful explanations. I did not understand why EV goes up when market goes down

  • @sreenathc
    @sreenathc 4 місяці тому +1

    Very well explained! I used to buy leaps and was never successful because my selection of stocks was always those “lottery ticket stocks” companies that don’t make money now, but hoping to be super profitable in the future. Huge mistake. Your selection is perfect…reduces risk substantially! Plus you can earn small monthly income by selling a far out of the money call every month. Thank you

  • @ssy333kk5
    @ssy333kk5 5 місяців тому

    Thanks for the detailed explanation Davis. Now market is down in September, do you think now is the time for leap or should wait a little longer?

  • @jeffocarroll7848
    @jeffocarroll7848 26 днів тому

    Would you sell CC's if Stochastics overbought ?(for more income) Obviously you don't want the trade closed but could roll up and out. Maybe a Call ratio spread as another option?

  • @Jimmy_Yap
    @Jimmy_Yap 9 місяців тому +2

    Thanks for sharing another new strategy. The Leaps strategy seems like required big capital to enter the trade.
    Is it possible to sell the call in the same time in order to reduce the capital required ? If yes, which strike price and DTE to choose ? Many thanks in advance for sharing.

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +2

      Yup, that would be called the Poor Man's Covered Call (PMCC). See these:
      1) ua-cam.com/video/k26E1J93PA4/v-deo.htmlsi=ScnQ_cV4SC2tCO5b
      2) ua-cam.com/video/mgYBglXqgpA/v-deo.htmlsi=77BOi6fvc8W2jbKD

  • @mydivinelife4774
    @mydivinelife4774 7 місяців тому

    What is prices going down. When to exit ? What are rules on that ?

  • @eamonterey2429
    @eamonterey2429 6 місяців тому +1

    I have PLTR 7/19 28C. If the stock stays above 28 should I roll a few weeks out for more premium? What do most traders do in this situation? Thanks

  • @larrythecoderguy9560
    @larrythecoderguy9560 4 місяці тому +1

    love, love, love that video - great job! Question - for portfolio allocation purposes, what percentage of my portfolio would you recommend for placing LEAPs.

    • @optionswithdavis
      @optionswithdavis  4 місяці тому +1

      That's entirely up to you. No right or wrong here. See this: ua-cam.com/video/AP2a81yPjrk/v-deo.htmlsi=JkHfow7KDCgJsnmi

  • @ntheq3982
    @ntheq3982 5 місяців тому

    Do IV crush play into LEAP strategy... Maybe close early or roll. I just believe just because a stock/ETF is going up your not guaranteed anything

  • @CapAnson12345
    @CapAnson12345 9 місяців тому +6

    Do you wait for like a 5% dip before putting on one of these?

    • @josephsaeteurn9158
      @josephsaeteurn9158 9 місяців тому +11

      most time i will buy leap on bottom of BB.. right now is good time to buy Starbucks leap.. i bought 1 after earnings..

    • @Andrew-cm5tc
      @Andrew-cm5tc 3 місяці тому

      @@josephsaeteurn9158 In long term trend trading, Bollinger bands and other channels like keltner channels are used. Meaning that they would buy when the trend changes and price hits the top of the bollinger bands or keltner channels and sell or short when it hits the bottom of the channel. In general, I wouldn't try to swing trade short or short for longer trend trades. The probability for shorting mid to long term trades isn't as good as just long only. The win rate for this isn't very good but the wins are massive. In the past, I've had good luck just buying when the daily RSI is low. This is only for good companies and I look at the financial records. I also read a bunch of books on business.

  • @halbouma6720
    @halbouma6720 9 місяців тому +2

    This is basically the index roll strategy I read about at the turn of the century (2000) which become more known as lifecycle investing from the same named book. There was a variety of reasons for why I didn't do it then, but I think with yours and other videos I'm better to do it now. Thanks for the video!

  • @robertbarry1792
    @robertbarry1792 2 місяці тому

    Do you have a video for bear put spread leap?

  • @joehong624
    @joehong624 6 місяців тому

    I bought a leap at 0.7 delta and has since moved in my favour to 0.9 delta with 180 days to expiry should I roll out and higher strike price ?

  • @AGhi-t2s
    @AGhi-t2s 8 місяців тому +1

    Thank you for you video. If had bought a long LEAP call on SPY or QQQ in December2021, the underlying would have been below entry point for two years, that together with time decay would have given large losses, potentially all premium paid. What do you suggest to avoid such losses in the many periods of decline of underlying ?

    • @wnose
      @wnose 8 місяців тому

      Leaps only work when the underlying is constantly increasing. If the underlying dips hard, then sell.

    • @medavide1449
      @medavide1449 3 місяці тому

      Sell puts far on the future on SPX, VOO, SPYG, SPYI, ETC.

  • @NQT0125
    @NQT0125 7 місяців тому +1

    Thanks for your fantastic video. May I know now that the market is so high, is it still advisable to buy leaps? Example the current market may be expected to to drop 10-20%. Thanks in advance. So do you . Can I still buy leaps and do covered calls in a falling market? Thanks and congrats on your successful trade!

    • @jameshipp4456
      @jameshipp4456 Місяць тому

      You deserve an answer to this question. From my own primitive modeling, it looks like the losses are not too terrible if SPY declines at a 10% pace. This touches on the point that you should not buy more of the long 80-delta option than you can afford to lose.

  • @Andy-nc4iv
    @Andy-nc4iv 7 місяців тому

    what about IV & the risk ?

  • @ianLord77
    @ianLord77 6 місяців тому

    Excellent breakdown of the strategy. Just one note - assessing general market direction and sentiment is paramount to the success of buying LEAP calls. Even the strongest stocks will go down in a general pullback and that could last for a while therefore potentially wiping a good chunk of the LEAP calls.

  • @chuck5085
    @chuck5085 7 місяців тому +3

    Very good analysis. Much appreciated.

    • @TBradFashionModel
      @TBradFashionModel 7 місяців тому

      Yes, This was crystal clear,....don't understand why it was so, however, it's a great strategy

  • @shaunglendinning
    @shaunglendinning 9 місяців тому +2

    Great segment Davis. Sometimes the simplest strategies give the best rewards. As always humbly appreciative. Best.

  • @beth4698
    @beth4698 7 місяців тому

    Will Visa be a good Leaps now? Everything is at all time high so not the right time to enter this?

  • @Ballistichydrant
    @Ballistichydrant 7 місяців тому

    Awesome thanks ❤. My broker platform does not have a roll button. If possible I’d be very grateful if you had the chance to demonstrate a manual roll. Just if you can. ❤ Thank you for your wonderful work and sharing ❤

  • @juniorbansal
    @juniorbansal 9 місяців тому +2

    Do you sell near dated weekly calls and puts to recover your cost? While letting your position grow

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +2

      It depends if I plan to hold on to the position for the long term or not. Usually I'll have multiple positions and sell calls on some of them like this:
      1) ua-cam.com/video/-3JxZdqyqlU/v-deo.htmlsi=1iZRVeHpuXVgshlf
      2) ua-cam.com/video/pQbe0IZrs04/v-deo.htmlsi=pZm3I9kBaExOD2fH

  • @jimgeyer3475
    @jimgeyer3475 7 місяців тому +1

    Outstanding Commentary!!! Priceless!!! Thank You!!

  • @moa6344
    @moa6344 9 місяців тому +1

    This strategy needs to wait for the good timing to enter. At the current level, I am not sure if buying leap option for, say, Meta, will be a good timing .... Davis, any guidance here ? thanks

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +1

      Yup, at this moment the market is near its highs so would be more prudent to wait for a move down before considering to enter. If you have adequate capital, one of the ways to enter would be similar to this: ua-cam.com/video/dt5DXt5G-T4/v-deo.htmlsi=6Jx1TaFkHOGe8esW

  • @KT-zx9jr
    @KT-zx9jr 3 місяці тому

    Just re-watched Tony. Nice stuff! At current market levels, would you consider a 2 year leap on spy or qqq? Or, do you ever sell the leaps if the market turns down or do you keep selling weeklies against them? Thanks very much!! Appreciate it.

  • @anthonyakidi4872
    @anthonyakidi4872 9 місяців тому

    you are one of the very best at this game. your simple, clear and straightforward approach is second to none. I'm really glade i found you.

  • @Aloha0088
    @Aloha0088 Місяць тому +2

    Oh my goodness this is the best video ever on this, thank you!!

  • @MHN212
    @MHN212 9 місяців тому

    Have you noticed whether the premium for longer dated options increases in a linear manner or is there a certain expiration point beyond which the price of the premiums begins to plateau? e.g. buying an 8 month DTE is about the same price as buying a 12 month DTE ?

  • @amitpadgaonkar8830
    @amitpadgaonkar8830 2 місяці тому

    I like your content. I would like to get some guidance from you for 1) covered call strategy for generating consistent income 2) income with dividends 3) automating options.

    • @optionswithdavis
      @optionswithdavis  2 місяці тому

      See this: ua-cam.com/video/JOpVi6hkzYg/v-deo.htmlsi=FTtrVR2XW05Zdrai

  • @ceciliacirrincione428
    @ceciliacirrincione428 2 місяці тому

    I have a leap that is deep ITM so if I understand, it has very high intrinsic value with 180days remaining. I think I made a mistake and sold some but holding the rest because I notice it’s still going up in value as the stock is in an uptrend. When is the best time to sell leaps - sounds like I will optimize gains by holding another 90days so long uptrend continues, until I hit that 90dte - would you agree? Thanks so much for your videos, please confirm my understanding is right.

  • @youyou-dv8fr
    @youyou-dv8fr 9 місяців тому +7

    When did you open your QQQ leap options? How long did it take to get those gains? Thx for the video.

  • @KT-zx9jr
    @KT-zx9jr 9 місяців тому +1

    Nice presentation Davis. Well done. Have you ever considered selling at ATM option near rolling date to remove some capital and still get great upside? Good work, thanks.

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +2

      Thanks. If you mean selling a call to turn it into a PMCC, then it depends on if I plan to hold it for the long term or not. Usually I have multiple positions and sell calls on some them like this:
      1) ua-cam.com/video/-3JxZdqyqlU/v-deo.htmlsi=gEaVFihIn1Ffxn5k
      2) ua-cam.com/video/pQbe0IZrs04/v-deo.htmlsi=Dyj1hErRsGSpFYkM

    • @KT-zx9jr
      @KT-zx9jr 9 місяців тому +1

      @@optionswithdavis Thanks Davis. Yes, basically your long a call......it moves up nicely, you sell another call on it say ATM......to remove risk and also profit from the spread of the vertical as time value collapse with say 90 or so days left......vs rolling..... Thank you.

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +2

      I like the way you think 😉 What you've mentioned is called legging-in to a PMCC and it's actually a little advanced, and I mentioned it here: ua-cam.com/video/mgYBglXqgpA/v-deo.htmlsi=dqi2EcRE6SIceVlL

    • @KT-zx9jr
      @KT-zx9jr 9 місяців тому

      @@optionswithdavis Thanks Davis. I do it at times. Cuts the risk in half and still llots of upside from the new vertical IFF the stock stays at least the same....Thanks

  • @riken1974
    @riken1974 Місяць тому

    Do you sell call after you have LEAPS in SPY? If yes, what is the delta and dte would you enter?

    • @optionswithdavis
      @optionswithdavis  Місяць тому +1

      See these:
      1) ua-cam.com/video/k26E1J93PA4/v-deo.htmlsi=ZyUNA9yLNk-QWIRK
      2) ua-cam.com/video/mgYBglXqgpA/v-deo.htmlsi=alP1b-te8m4ZFbWS

  • @mylikedvideos3766
    @mylikedvideos3766 Місяць тому +1

    Thank you for this excellent video. It was very helpful.

  • @ItechGa77
    @ItechGa77 Місяць тому

    Which one better long call ITM vs OTM ? Any suggestions please !

  • @CouragePope
    @CouragePope 2 місяці тому +3

    This is an excellent video with lots of good insight. Thank you.

  • @gigglecompass1
    @gigglecompass1 7 місяців тому +1

    Best explanation yet on LEAPS. Thank you.

  • @stevestevens9276
    @stevestevens9276 9 місяців тому +2

    Do you ever sell calls off those shares you control?

    • @optionswithdavis
      @optionswithdavis  9 місяців тому

      It depends if I plan to hold it for the long term or not. If I have multiple positions I will sell calls on some of them and potentially exit them as a PMCC while holding the rest for a longer term. I've done that here:
      1) ua-cam.com/video/mgYBglXqgpA/v-deo.htmlsi=UuKA7hMbiaBSA8zS
      2) ua-cam.com/video/k26E1J93PA4/v-deo.htmlsi=XCx7viSKEBTeK2xm

  • @antimattr68
    @antimattr68 9 місяців тому +1

    Thanks Davis, the advice and insights you share in your videos never disappoints. I especially appreciate it when you demonstrate live trades that you made that help explain your point. Keep up the good work!

  • @jasonc934
    @jasonc934 9 місяців тому

    So it's best to buy leaps on beaten down stocks that you believe will appreciate? With market so toppy, it's tough to find any good leap candidates. You probably bought META when it dived down to around $90 few quarters back when it reported bad earnings.

  • @beth4698
    @beth4698 7 місяців тому

    Is it ok buy leaps for Qqq now June 15 when everyone is saying during summer there is a correction? Thanks

    • @tabbott429
      @tabbott429 7 місяців тому

      Think for yourself. You have to make that decision.

  • @andrep4789
    @andrep4789 3 місяці тому +1

    Thanks for sharing this vid Davis. Very interesting!

  • @SophieLoschy
    @SophieLoschy 3 місяці тому +144

    Putting well-earned money into the stock market can't be over emphasised for first-time investors, unlike a bank where interest is sure thing! Well, basically times are uncertain, the market is out of control, and banks are gradually failing. I am working on a ballpark estimate of $2M for retirement, and I have a good 6-figure loaded up for this, could there be any opportunity for a boomer like me?

    • @NoahNollens
      @NoahNollens 3 місяці тому

      Personally, I would say have a mentor. Not sure where you will get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.

    • @BrigetGstar
      @BrigetGstar 3 місяці тому

      Some individuals minimize the importance of counsel until they make regrettable mistakes. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $175k to $450k despite inflation.

    • @BrigetGstar
      @BrigetGstar 3 місяці тому

      Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with *Julianne Iwersen-Niemann* for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.

  • @peterduncan1587
    @peterduncan1587 5 місяців тому +1

    Amazing video! Thank you. Extremely valuable info explained easily enough that my dumbass understood thank you!! 😊

  • @harishiyer4170
    @harishiyer4170 9 місяців тому +1

    What is your exit plan/rules for a market downturn?

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +1

      Mentioned here: ua-cam.com/video/OFcXqvCXVjQ/v-deo.htmlsi=1gYqjcX19z_eHTTx

  • @Bakers924
    @Bakers924 8 місяців тому

    Selling leaps for covered calls on qqq. What delta do you use?

    • @aaron6806
      @aaron6806 8 місяців тому

      Are you bearish on QQQ? Covered calls, especially long-term covered calls indicate you hope the share price doesn't move up very far.It is a bearish strategy that does not do well if the underlying moves up significantly, or quickly (or both). If you sell longer-term calls far enough OTM to avoid having to roll constantly you will receive far less premium overall than doing it monthly, or every 6 weeks or so. If you're forced to roll by misjudging the movement of the underlying, why not just take shorter-term trades? Covered calls can be a pain in the ass even when the underlying just moves up slowly, but relentlessly. In those situations I just give up and wait for it to start moving sideways for a while.

    • @Bakers924
      @Bakers924 8 місяців тому

      @@aaron6806 thanks

  • @theworkinginvestor
    @theworkinginvestor 8 місяців тому +1

    How do you know when the right time to buy a LEAP? Do you wait until the market goes down? Then Volatility is up and would be more expensive to buy. Do you buy when the market goes up? Then what happens it it crashes and you lose your intrinsic value? 😢

    • @optionswithdavis
      @optionswithdavis  8 місяців тому +1

      You can time it similar to this strategy:
      1) ua-cam.com/video/dt5DXt5G-T4/v-deo.htmlsi=Rtu_lOErHciljzwC
      2) ua-cam.com/video/c9RbaekCPt4/v-deo.htmlsi=9Ixw5ISSL6zwjqZC

  • @JosefTorkelsen
    @JosefTorkelsen 9 місяців тому

    Sorry if I missed it in yr video but if the stock tanks while you have yr LEAPS on and you believe it will go up and recover, is it better to just hold your existing LEAPS on to roll down and reset your deltas?

    • @ThaRealERAQ
      @ThaRealERAQ 8 місяців тому +1

      Nah man get out and reenter

  • @quintoux
    @quintoux 3 місяці тому

    Thanks a lot for all the detailed, this is really helpfull. However after having a look to the current data, it seems that for QQQ (for exemple) most of the options expiring > 365 DTE that have a Delta between 0.8 and 0.9 are currently ITM. Is it something important to take into consideration or your LEAPS strategy is still applicable no matter if the Option is ITM or OTM ?

    • @jeffocarroll7848
      @jeffocarroll7848 26 днів тому

      Buying 80-90 Deltas they are always in the money. We want this as there's less time decay and the option acts more like the stock ie. gains say 80c for every $1 move in the underlying rather than say a 50delta option where it only gains 50c and is all time decay( to start anyway). Hope that helps

  • @fredpui
    @fredpui 7 місяців тому

    why dont you trade tqqq where IV is higher than qqq ?

  • @Mcgurkyyy101
    @Mcgurkyyy101 6 місяців тому

    I can understand why you’d roll/close at around 90-180 dte but wouldn’t it make more sense to wait till after a year so the profits are taxed at long term capital gains tax. Especially if the option is deep itm at that point since there would be much more intrinsic value than extrinsic

  • @MrAerialsound
    @MrAerialsound 9 місяців тому +1

    Awesome content!!!! -- Do you suggest this for retirement accounts ?

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +1

      Possible depending on your holding time frame.

  • @aGr3atD4y
    @aGr3atD4y 8 місяців тому +2

    Thank you for the great video, sir!

  • @JS-vl5gd
    @JS-vl5gd 5 місяців тому +1

    Thanks for this video, Davis. I think your explanation was awesome. I've been buying at the money leaps, but it's a little bit difficult with the small price fluctuations of the underlying. Now I get it that if I get them in the money with a delta between .80 to .90., even if the price drops a little bit, the extrinsict value counters the delta decrease, as a cushion, liked you said. Thanks a lot again!

  • @Tito_pizza
    @Tito_pizza 4 місяці тому +1

    Thank you. Outstanding explanation!

  • @bobisbob646
    @bobisbob646 9 місяців тому +1

    Great video man. I've heard this described before but your explanation of the way delta cushions the blow as the price drops was awesome.

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +1

      Thanks. I went further to explain it more in-depth here: ua-cam.com/video/OFcXqvCXVjQ/v-deo.htmlsi=P5Duuk17axH3psFH

  • @WanderlistAdventures
    @WanderlistAdventures 5 місяців тому

    Great video Davis, really good explanation of LEAPS.

  • @ceceliatran8595
    @ceceliatran8595 9 місяців тому

    Thank you for sharing your knowledge on Leaps. Best explanation on this topic.

  • @MaxWisen
    @MaxWisen 6 місяців тому

    Great video! How do you prevent assignment/exercise when an option is so deep in the money?

    • @billmoney1
      @billmoney1 6 місяців тому

      That only happens when a call option expires

    • @medavide1449
      @medavide1449 3 місяці тому

      ​@@billmoney1 American options can be assigned at any time before expiration. European options however are only assigned at expiration. I learned this lesson the hard way on an old company called AOL. It was well known back in the late 90's early 2000's. Basically, lost my shirt when I was assigned VERY EARLY bc the stock dropped from 50 to 15 in one day. Needless to say I had to buy those options at double the market value when assigned early. Still hurts to think about it.! Financially, I wiped out all my savings at that time.

  • @ReverberatingWisdom
    @ReverberatingWisdom 7 місяців тому +1

    Excellent video, excellent explanation of the greeks.

  • @georgeTO418
    @georgeTO418 9 місяців тому

    Hi Davis: Excellent Video Thank you very much 👍Using a real live example is very powerful and easy to follow. I have IBKR Desktop . I'm a newbie and have not traded LEAPS. Could you do an example using the IBKR platform?

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +1

      You're welcome. I don't really trade options on IB since their platform isn't as option-friendly but will consider it.

  • @gawtwins1
    @gawtwins1 8 місяців тому

    Great video! I have been thinking about LEAPS for awhile now. Thanks!

  • @byrdy2021
    @byrdy2021 Місяць тому +1

    You are the best. Thank you!

  • @daniel.longfellow
    @daniel.longfellow 9 місяців тому

    Do you ever sell a call on these to add additional income and help lower costs? Or is something like that a viable option for someone starting out?
    Also, could this same idea be extended to a protective put? You could buy a LEAPS put on a stock that has trended bearish lately and then sell a lower put at a shorter expiration to generate additional income and offset costs/losses

    • @optionswithdavis
      @optionswithdavis  9 місяців тому

      If you mean selling a call to turn it into a Poor Man's Covered Call (PMCC), watch these:
      1) ua-cam.com/video/mgYBglXqgpA/v-deo.htmlsi=BGP3qFBhM_gQe9Qb
      2) ua-cam.com/video/k26E1J93PA4/v-deo.htmlsi=_DGWFKdwpESHJ0Xg

  • @jgwilliams67
    @jgwilliams67 12 днів тому

    Never looked @ LEAPS this way. What's your opinion on 6 months out using your strategy? Thanks for the video. 😊👍

  • @bfine1962
    @bfine1962 9 місяців тому +4

    Great video. How often do you put these on?
    Have you started a trade alert service yet?

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +8

      I use this as a mid to long-term stock replacement strategy so I'll only enter if the underlying is at a price I don't mind getting in at. Not too fond of trade alert services as I prefer teaching how to fish than giving the fish so no plans for now 😢

    • @arunsaibk
      @arunsaibk 6 місяців тому

      @@optionswithdavis how do we determine if underlying at a price to enter in, thanks for your videos

    • @ntheq3982
      @ntheq3982 5 місяців тому

      I second that. How to feel pretty confident of entry. That is actually the biggest trick.

  • @desiexpat7
    @desiexpat7 3 місяці тому +1

    Well explained..thanks

  • @josephsaeteurn9158
    @josephsaeteurn9158 9 місяців тому +1

    how do u deal with a bear market on the leaps?

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +2

      @Zdashable Nice one 😂

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +1

      @josephsaeteurn9158 Watch this: ua-cam.com/video/OFcXqvCXVjQ/v-deo.htmlsi=1gYqjcX19z_eHTTx

  • @joehong624
    @joehong624 9 місяців тому +4

    Thanks for sharing , is there a preference/ advantage to roll in a up/ down day , high/low IV day ?

    • @marinawong9662
      @marinawong9662 6 днів тому

      Since you’re buying options, I would imagine a low IV day is better.

  • @mandyll
    @mandyll 9 місяців тому

    Best video on LEAPs that I've watched! Thanks Davis!

  • @GreenPKY
    @GreenPKY 8 місяців тому

    do we have leap put???

  • @swillmerchant9886
    @swillmerchant9886 5 місяців тому

    what your thoughts on buying LEAPS and then selling normal 20 delta calls against it as poor man's covered call. are you doing it, if not, why. thanks for your videos Davis.

    • @optionswithdavis
      @optionswithdavis  5 місяців тому +1

      You mean like this:
      1) ua-cam.com/video/k26E1J93PA4/v-deo.htmlsi=QS3ZVkLT_oxLRGkJ
      2) ua-cam.com/video/mgYBglXqgpA/v-deo.htmlsi=Rz1yTRJh3iRhRsiM

  • @braddeicide
    @braddeicide 9 місяців тому +1

    If your shares are called away, do you lose the extrinsic value?

    • @optionswithdavis
      @optionswithdavis  9 місяців тому +1

      This is a Long Options strategy so there's no "shares" and no being "called away".

    • @braddeicide
      @braddeicide 9 місяців тому

      @@optionswithdavis your long call option is the cover for the call you're selling, they're ITM so they can be converted to shares if your short call is exercised. Have you not had the price of the underlying go above the level you've sold a call at yet? Your LEAP will go away, I'm just not sure if they efficiently sell it, or if the broker inefficiently exercises the LEAP to shares and throw away thousands of $ in extrinsic value.

    • @braddeicide
      @braddeicide 9 місяців тому

      @@optionswithdavis ok it seems you get to deal with it yourself, the broker doesn't do it.

    • @optionswithdavis
      @optionswithdavis  9 місяців тому

      Oh okay I think you mean the Poor Man's Covered Call (PMCC). If what you mean is that the price goes above your short call then there's always the risk of early assignment where you will be short 100 shares if assigned. At that point you can exercise your long call to square off the short shares but I'd avoid the whole assignment in the first place by simply closing out the PMCC as a whole since it should already likely be somewhere near max profit. And yes, if you exercise your long call you will lose the extrinsic value. For the PMCC strategy, watch these:
      1) ua-cam.com/video/k26E1J93PA4/v-deo.htmlsi=G1mnyyYusOVuzYVv
      2) ua-cam.com/video/mgYBglXqgpA/v-deo.htmlsi=n0CmTktKhgHcaP_q

    • @braddeicide
      @braddeicide 9 місяців тому

      Oh sorry, I was watching this at 4am and every LEAP video I've seen before was for PMCC :). Watching the video again, thanks.

  • @awakenedmind9943
    @awakenedmind9943 4 місяці тому +1

    Awesome video!❤