@@GaelenMastYT That's a solid return, dude! Personally, I prefer the bit of risk that the LEAP strategy offers, since the returns can be pretty lucrative. I've made ~40% this month due to a few large moves in SQ AAPL and MSFT.
I personally find that high OTM LEAPS on ETFs are almost a fool proof way to make a huge increase on your investment. Even if you stick with an ATM or ITM call option with ETFs, you're still very likely to double or triple your money over the course of a year.
I prefer buying leaps out of the money. More profit potential and less capital upfront. But a reasonable and conservative strike with 1-3 year options.
@@askarithagreat1686 I like LEAPS. I do LEAPS. That being said, LEAPS should be ITM to allow the price to drop without losing your entire investment. LEAPS are basically buying stock on margin (obviously there are differences between the two, but it’s pretty similar)
Yo I know this is an older video but thanks for the info, I've been a casual retail investor for a while and I've been burned on options due to my lack of knowledge and impulse control. I've always thought to myself, if I just had the money to invest in long term calls/puts, it would be almost a guarantee that I'll return a profit (didn't know it was called LEAPS). This video really clarified and put those thoughts into perspective. I also really appreciate how you don't use that annoying "youtube" voice and are just straight forward with the points. Thanks for the info, love the channel.
Welcome back Greg! I definitely agree that ETFs are safer for the LEAP strategy -- but also because I'm a little more risk averse when it comes to options too. Your AAPL calls have been ridiculous though, keep it up my man 🔥 🔥
I love the risk involved with options. Since I started investing the week right before the major market crash in February I'm pretty much numb to volatility 😂 I really wish I had held those AAPL Calls, they would have more than doubled my account. I've been saying "Apple is overpriced, I'm not buying" for a month now and everyday it seems to keep climbing higher, nuts!
what are some good etfs that have option expiry dates for 2024. I cant seem to find any growth etfs with option expiration dates far out. Most are within 2022.
Best explanation of the greeks ive ever heard. This earned u a subscribe. I started trading options in december and had to hold through 3 margin calls and once it came around i turned a toral investment of $3,600 to $27,000 and it happened in a 2 week time frame. I since made a few one day or one week to expiration trades and lost it all in a week. Toward the end of last week i started to notice the greeks played a big part in my losses. I searched for a better understanding and didn't find it. I came here looking for information on leaps to mitigate the interest rate hikes and have gained that and something much more. Thanks bro. I am planning to vlog the comeback and when i pop i will shout out your channel. U have my word.
thank you for this video. recently I stopped buyimg stock amd went into trading leaps and I must say that it has helped my portfolio a lot. keep up these informative videos. 🤙🏽
Love your channel and I have subscribed. Your presentation is the best to teach options strategy. I have been buying long term call options for months and seeing good result. Been buying the longest call options for SPY and QQQ as I am scare that once I bought the call, the bear will be out and hence longest call give me a lot more time to be correct.
That's a great strategy! Personally I would avoid buying any this month since historically September is the worst month in the stock market but invest at your own risk 👍🏻
If I had to choose ONE, I would say the best would be the wheel strategy but generally, it's bad practice to stick with a single strategy since market conditions are always changing
Correction: A 50% win rate strategy, provided you get the direction right AND the timing, ie. you don't wait too long to close or you don't close too early, also provided you won't need the invested capital in the next few months, also provided you'll be able to close the position due to liquidity issues, all in all a 20-30% win rate strategy.
Hey bro, thanks for sharing your knowledge, would it be even more profitable if I actually exercise the option and then buy the 100 shares and sell then the same day? Cheers!👊🏻👊🏻
Exercising options is generally a waste of money. When you exercise you give up all the extrinsic value for your option and usually you’ll buy the stock at a breakeven price above the current share price.
Not all of the time, but you don't need to time the bottom perfectly with this high volatility. You're unlikely to ever buy at the very top or very bottom of the market and you have to choose wisely when to get out.
One question I still have probably bc is dense lol but how do leaps compare to real short term options in terms of extrinsic value - or is better to ask questions a there a big difference In delta? Again great work.
If you BTO a LEAP on a stock with a 1.5 year DTE and it remains below your break even point for the entire time except the final 2 months before expiry, and then it finally rises slightly above your break even point, could you be he. STC the option and make a profit?
If it’s above your breakeven 2 months before expiration, you should be at a profit. Whether you want to take that profit or let the option expire ITM to exercise your right to buy the stock below the current share price is up to you. Personally, I would take profit and use whatever money I made in the trade to buy more shares.
Long straddles and strangles are great if you're expecting a lot of volatility but not necessarily if you're unsure about direction. If the stock doesn't see a lot of movement, both of your long options will lose value on implied volatility and time decay!
@@TheFinancialMinutes Thanks for the reply, it makes sense! I'm trying to figure out a strategy that would work long term where I don't have to check on them daily.
Do you think LEAPS are better for ETFs? I feel like for people who don’t want to deal with high volatile stocks, Leaps (specifically ITM leaps) are good cause they mimic price movement of the underlining stock price.
I'm new to stock. When the stock you own start making profit before the expiration date, is that when you exercise your option? You show how much money you profit at the end but Im not sure when you exercise the option.
Thank you for this video, never knew this was an official strategy, how long are you holding these plays? It seems that if a stock is stagnant that the theta would still catch up to you.
It really depends on how quickly the stock moves, as you said if the stock stays stagnant a while you could lose money on the Theta but recently stock prices have been making bigger moves so the Delta on my options typically outweighs the time decay.
I like your content. I just saw your newly published video on LEAPS. You have a radical different POV from this video vs. your most current LEAPS video. In this video you claim making $9k on this strategy. Please explain why you’re no longer a LEAPS supporter?
@@LoxoVe You still have a *very* long time for these contracts to go your way and make a lot of profits on them. I have some $140 1/15/2021 apple calls that I'm also holding. I originally paid 10.65 for the first contract, then it dropped I bought another one for 7.10, and finally one for 5.50 on sep 9. My average cost now is 7.75 for these 3 contracts and I am planning on buying another one today to bring it down a bit more. You're still in the money and imo have nothing to worry about - buy another contract if you can afford to or if not just ride the wave back up.
Time decay is negligible for a LEAPS but if you want to protect against it you can sell calls using the poor man's covered call. P/L is a personal decision but I base my exits on price targets & fundamental analysis. Time frame / expiration date is 1-2 years.
I wonder if you have put all your money buying shares in sometime like NVDA and hold the shares that last 5 months… If you want to get rich place all you bets on one company … If you want to play risky put them all on LEAP for Amazon or Apple
I prefer diversity across many stocks and strategies for risk tolerance purposes. I just posted a video revealing my portfolio with all shares, cryptos, and current options i’m holding.
OTM LEAP options 25-40 Delta thoughts, to take advantage of leverage as underlying accelerates towards to make it ATM versus the typical 70-80 delta LEAP option for calls?
The issue with OTM LEAPs is that Theta decay will more significantly affect their value. If you have an equally deep ITM and OTM call, both will have roughly the same Theta value, but the OTM call will be worth significantly less, so Theta eats away at a larger % of its value as time passes.
The theta/ time decay on monthlies are way too high for my liking. I like to keep it as far in the money (high delta) and far out (low theta). This also gives you more time for the option to go your way.
@@mikeJones-zo8si Ah yes! A poor man's covered call is a great strategy for bringing down your cost basis but picking your short option can be tricky! If you don't choose correctly you could actually end up losing money on both your options. I might make a PMCC tutorial video to explain this soon!
Greg I bought AAPL Call Leaps expiring on sept 17, 2021 122.5 strike price... im down 30% right now. i know its still a long way to expiration and it might bounce back... can you give me tips on at least minimize my losses (if it didnt bounce back) or any strategy going forward? this is my first leaps option and i did the 6 months ITM. I'm super risky, love risks. not so worried about the amount i will lose ($500 right now, $1500 total) worst. I am more excited with the learning on this one. any opinion is welcome. just wanna learn more. thanks!
Hi Greg. Why not consider a long dated synthetic call option like your leaps with 6 to 12 mths DTE? Probably end up not paying any prem or even receive a credit, with little/negligible theta decay.
I hit a like button I have just found ur channel u seem to be a young smart guy I am a newbie and an old man who is interested in options trading for this u do not have to worry about being assigned also do u trade a lotto option trade in and out very quickly on expiration date and do u watch any vaccine stocks closely I do watch pfe anwya keep up ur great work trying to learn from a smart young guy like u. Aloha and Mahalo from Hawaii
Thanks for stopping by, Bronson! I'm not particularly interested in vaccine stocks just yet but I do think there's a lot of potential in Moderna specifically, likely being the first to put a vaccine out. I typically hold LEAP options for 2-4 weeks at a time depending on how the market is moving but with the recent crash it looks like I may be holding for months, but in general, I'm not looking to be assigned on these options.
@@TheFinancialMinutes I try to stop by ur channel whenever I can. I am very new at this. Just wonder. Being assigned is not my choice isn't it. What is the best way to avoid to be assigned also Have u used mobile brokers like. We bull and Moomoo any opinions on them as a newbie I need to study much more before trading options but i am interested in LEAPS. Mahalo. Old man from Hawaii
As the buyer, you have the right to execute your contract but not the obligation. You're given this right when the option becomes in the money, but generally, you won't want to execute it because of the time value that's left. If you let the option expire in the money, then I believe it will be executed on your behalf. I'd definitely recommend Robinhood as a new investor because they're the easiest to use but I've heard good things about Webull as well. Personally, as an advanced options trader, I'm looking to move to Tastyworks.
@@TheFinancialMinutes Mahalo i am a newbie who will try to learn from a young smart guy like u Mahalo for ur time Have a great investing on election day or going forward
Stop loss is so important! I really pay attention to your videos, can’t wait until robinhood opens up here in Germany (hopefully not long now). Also thank you for your open discord channel. It is always nice to be in a community of like-minded people🏆
The Discord is one of my favorite parts of being a TH-camr, being able to connect with my fans on a daily basis is a blessing. I agree, stop loss is important, but typically whenever my option drops in value a lot I just buy more of them. As long as the stock I'm following doesn't break the pattern I'm anticipating, I'll hold until I turn a profit.
Luv it just found you tonight!! Ima do my 1st Leap soon, soon as in xmas time. You can create TRUE wealth like this... I luv it. We appreciate ur Time... TyTyTyTyTy😄💵💵
@@ron2040 Hey Ron haven't done my be LEAP yet... Still focusing on "becoming consistent"... God l need to so bad! Then lma do a LEAP! Have u done one?? N ty🙏 for ckn on me😘
First off, great video, thanks a lot. What is your exit strategy for LEAPS in that case? Lets say you've bought the Apple call for $480, expiring 1/21, when do you decide to exit? Do you wait closer to expiration or sell this option 45days-60days before expiry date? Can you really actually make week by week profits using leaps? Seems skeptical, whats your take on this? I am not ultra experienced with LEAPS but it doesnt seem like this will work for quicker returns compared to waiting out 6+ weeks.
I've been profitable every week for the last two months at least. I spread myself out usually among ~3 options at a time in case one doesn't perform as quickly as expected. My exit strategy is simply to sell when I believe the stock is overvalued, usually based on the 180d 4h chart, if the RSI is above ~70. This usually caps my gains, especially in the case of Apple, but what I learned from that is to hold multiple options in case the stock keeps running I can sell them later on. How quick you turn a profit really depends on the stock and that's why I prefer using this strategy on tech stocks. For AAPL, it took me around 2-3 weeks to get a 50% return but for SQ it took me 3 days to get a 100% return, it really depends on the timing at which you buy these options, and how quickly important news or updates come out on the company that makes them surge in value. I've made almost 60% returns over the past month using this strategy in combination with my long term portfolio which makes up around half of my investments.
@@TheFinancialMinutes Nice, thanks for the explanation. How far out are you usually buying these options (expiry)? 6 months? Anything more than 6 months seems to have a chance of not being able sell since there might not be open interest so thats why I am wondering.
@@MadhavanDawg Yeah, 6 months out. Right now most of the options I'm buying expiring January 2021. I don't really have an issue buying these options unless I'm trying to buy it closer to the bid price but you shouldn't have any trouble buying it at market price or slightly above!
@@TheFinancialMinutes Hi Greg, I am not too experienced, but I was considering buying an AAPL $140 Call for December 8th, its being sold for $898 right now and I was strongly considering it. Its around $10 out of the money. My plan is to sell around 45DTE, but I am wondering if this is a risky move? Are OTM calls generally a bad idea? Thanks!
the question, can you buy leaps calls in the money and then sell calls in indexes such as spx and ndx ? For example spx price is 4k, I will buy calls 2 years out strike price 3k and then sell calls weekly or 3 times weekly in spx? i know I can do that in spy but not sure in SPX or NDX. Thanks
Depends on the markets and the movement of the underlying stock. Sometimes I can get in and out within a few weeks other times I have to wait months for the next big catalyst on the stock.
Soooo just naked calls but long term? Seems a little light on the risk aversion. If that stock dont move the way u thought it would over 6mo than youre out that whole 700
one thing i dislike about LEAPS is that if after you buy, and you go into a bear market, your breakeven price to profitability is shifted a lot due to time decay. I bought a LEAPS at strike price of $119 but right after that ther was a 2 months bear market. In the end, in order for me to profit, the price needed to reach $125 for me to start seeing profit on it. So it's kinda suck if your LEAPS is not long enough.
Well that's really the case with any option strategy and ofc the longer you set your exp date the better chance you have at recovering your loss. Also, your breakeven isn't the point at which your option starts seeing profit, you can profit well before that point depending on how much time is left until expiration and how much you paid for the option. If a stock is $1 below your breakeven but you bought the LEAP when it was trading $5-10 below your breakeven and your option still has plenty of time left, you should be at a profit.
Implied volatility on LEAP options isn't much of a factor. You might see a 5% drop in IV after and earnings report comes out which doesn't take away that much value on the contract.
It actually works even then too you just have to adapt the stocks you buy. My UVXY long calls have been pretty successful since the huge correction we saw a couple weeks ago.
Nice video Greg. I just started this using deeeep in the money calls 1 year out. I'm selling short term calls (otm) for some extra profit. The underlying jumped up crazy fast and I had to buy back my short call for a loss of about $500!😖. Fortunately the large delta on my deep itm call made $200 more than I lost on the short call. Does anyone know if there is a way to make my robinhood account automatically buy back a short at a specific price in case I'm not able to follow the market?
You can always set a limit order and have it "good till canceled" instead of "good for day" That's the caveat when it comes to the poor man's covered call (which it seems like you were trying to do) in that if the underlying stock gets too volatile you'll lose out on some profits but generally if you pick a solid and steady stock, PMCC is generally a good strategy!
This was made before their 4-to-1 stock split in September 2020. Their price was cut from around $500 to $125 and you would own 4 shares for every single share owned before the split.
If the stock crashes your option will lose its Delta value for every dollar the stock goes down and if your option expires out of the money it becomes worthless
...ok...🤔...dear friend with Respekt... we both know that there is a small but important difference between "i have never lost money" and "how i never lose money" and we also know that there definitely are enough people outside there who automaticaly think of a free-lunch in the future...
As someone else mention... the Poor Man's Covered Call is a much better strategy than buying leaps. Buying options is usually gambling. Been in options for about 6 years, I have only been a buyer once, in March of 2020 I bought a SPY straddle ATM. It just made sense.... and i made a good return, because that period was a Black Swan event. Otherwise, it is gambling..... and; noobsville.
I made a vid on PMCC and they’re best fit for low volatility environments. Best to take advantage of a huge bull rally (like we saw in August and October 2020) with long call options otherwise you’ll continue losing on your short leg for a PMCC
@@TheFinancialMinutes You know what Greg, i realized that you and most of your viewers are probably young, and at the ripe age for high risk/ high reward trading. I'll carry on with my 'old man' covered calls, credit spreads and selling strangles to you guys in my boring Delta neutral portfolio; lmao. Take care, and good luck all.
All depends on risk tolerance. I only use around 10-15% of my account to trade options and don't mind being a little risky. Spreads and covered calls are excellent strategies as well. Wish you luck brother 📈
@@TheFinancialMinutes If you're 100% it's not based on the strategy outlined in this video. This worked great in a bull market... but everyone's a genius in a bull market. Literally any strategy worked. Regardless, leaps take some risk away but not all. And because they cost more, suggesting this to beginners without defining risk is dangerous as the higher cost can be a higher % of a beginner's portfolio.
Not much of a strategy if the plan is to just buy a call with expiration of 6-12 months. Also, not a 100% guarantee in any way. This is bad info and can lure people to do this if they don’t have a better understanding of TRUE options strategies.
Since it dropped so heavily..the options premiums dropped along with it even the waaay out of money ones. So pretty much any option you bought yesterday morning during low 600s has 4-5x. Especially if you held them up to 740 today.
Aloha Greg - Im in your Discord group with the Username Pacfin. Ive send a Friend request to you. Anyway, can you do a 6 Month Debit or Credit Spread to Lower your Cost basis on Expensive FAANG Stocks?
You know you're in a bubble when there are tons of kids giving "advice" on "100% win-rate" strategies and other nonsense. "NEVER lose money in options"......Jesus fuckin Christ.
Lol someone sounds salty Franky! It’s ok not everyone will have success in the stock market, everyone oughtta know that. I’ve been in doing this for around 3 years and this has been MY experience not guaranteeing that it will be yours or anyone else’s.
@@TheFinancialMinutes Still highly misleading as you haven't experienced a sustained bear market that stagnated for years. You could literally buy in well before the dot com bubble and the price wouldn't come back for 8 years or so.... The truth= "I haven't lost money yet using this strategy."
There is no such thing as perfect trade for all. Options do give you more advantage than just playing stocks. I have been trading options for 20 years licensed broker. If there was then he should be billionaire. Most consistent profit for options trading came from covered calls and I know this by looking at all the accounts. LOL
As a "licensed professional with 20 years experience," you should know not to put all your money in a single strategy and such, I'm not a billionaire. I limit long options to just 10% of my total net worth for risk management.
linktr.ee/finimizeLINKS
@@GaelenMastYT That's a solid return, dude! Personally, I prefer the bit of risk that the LEAP strategy offers, since the returns can be pretty lucrative. I've made ~40% this month due to a few large moves in SQ AAPL and MSFT.
Monthly is my goto, but recently started LEAPS.
@@TheFinancialMinutes Greg, I bought 2 out of the money $1000 tsla calls for Jan 2022. What is the best way to calculate profit / loss projections?
I personally find that high OTM LEAPS on ETFs are almost a fool proof way to make a huge increase on your investment. Even if you stick with an ATM or ITM call option with ETFs, you're still very likely to double or triple your money over the course of a year.
Holding a core 100 shares of 3x ETF, then selling puts and calls against it depending on direction.
I prefer buying leaps out of the money. More profit potential and less capital upfront. But a reasonable and conservative strike with 1-3 year options.
Ya that’s what I’ve been doing lately with less cash in reserve. Rn I’m running a $240 SQ Call exp Jun 2021 for Q1 earnings.
Bad idea. This is how you over leverage yourself and blow up your account...if you did this pre Covid you would be fucked
@@goose4186 so what would be your idea or best option strategy 🤔
@@askarithagreat1686 I like LEAPS. I do LEAPS. That being said, LEAPS should be ITM to allow the price to drop without losing your entire investment. LEAPS are basically buying stock on margin (obviously there are differences between the two, but it’s pretty similar)
You should consider selling puts. You receive premium upfront and theta works for you. Deep OTM works.
Yo I know this is an older video but thanks for the info, I've been a casual retail investor for a while and I've been burned on options due to my lack of knowledge and impulse control. I've always thought to myself, if I just had the money to invest in long term calls/puts, it would be almost a guarantee that I'll return a profit (didn't know it was called LEAPS). This video really clarified and put those thoughts into perspective. I also really appreciate how you don't use that annoying "youtube" voice and are just straight forward with the points. Thanks for the info, love the channel.
Glad you enjoyed! Good luck trading 🍀
1) 6 months out 2) ATM or in the money ITM with higher delta. (or OTM but watch time decay)
Welcome back Greg! I definitely agree that ETFs are safer for the LEAP strategy -- but also because I'm a little more risk averse when it comes to options too. Your AAPL calls have been ridiculous though, keep it up my man 🔥 🔥
I love the risk involved with options. Since I started investing the week right before the major market crash in February I'm pretty much numb to volatility 😂 I really wish I had held those AAPL Calls, they would have more than doubled my account. I've been saying "Apple is overpriced, I'm not buying" for a month now and everyday it seems to keep climbing higher, nuts!
what are some good etfs that have option expiry dates for 2024. I cant seem to find any growth etfs with option expiration dates far out. Most are within 2022.
Best explanation of the greeks ive ever heard. This earned u a subscribe. I started trading options in december and had to hold through 3 margin calls and once it came around i turned a toral investment of $3,600 to $27,000 and it happened in a 2 week time frame. I since made a few one day or one week to expiration trades and lost it all in a week. Toward the end of last week i started to notice the greeks played a big part in my losses. I searched for a better understanding and didn't find it. I came here looking for information on leaps to mitigate the interest rate hikes and have gained that and something much more. Thanks bro. I am planning to vlog the comeback and when i pop i will shout out your channel. U have my word.
Great job! $3600 -> $27K is good shit
thank you for this video. recently I stopped buyimg stock amd went into trading leaps and I must say that it has helped my portfolio a lot. keep up these informative videos. 🤙🏽
I would stray from bullish LEAPS right now
Lad, you are great at teaching. Clear, concise, correct and complete presentation = me subscribed. Thanks for this presentation.
Awesome, thank you!
Awesome video bro…. I know I’m a little late to the party, but hey, I’m still learning this game.
Never too late to learn!
Love your channel and I have subscribed. Your presentation is the best to teach options strategy. I have been buying long term call options for months and seeing good result. Been buying the longest call options for SPY and QQQ as I am scare that once I bought the call, the bear will be out and hence longest call give me a lot more time to be correct.
That's a great strategy! Personally I would avoid buying any this month since historically September is the worst month in the stock market but invest at your own risk 👍🏻
So, if you only had one option strategy to choose from and never engage in other options strategies, would leap options be the one to stick with?
If I had to choose ONE, I would say the best would be the wheel strategy but generally, it's bad practice to stick with a single strategy since market conditions are always changing
Love how you described the options trading
LEAP options are the best!
Correction: A 50% win rate strategy, provided you get the direction right AND the timing, ie. you don't wait too long to close or you don't close too early, also provided you won't need the invested capital in the next few months, also provided you'll be able to close the position due to liquidity issues, all in all a 20-30% win rate strategy.
No this is not for beginners. And no one serious would say it's a 100% safe strategy. It's gambling with money so please be honest.
@10:18 hes showing a September 17th 2021 Spy call worth $5491. Today August 30th 2021 that same call is now worth $15,222. great advice!
SPY is on a moon mission, crazy gains on that trade!
Why do you buy call options on different companies without sticking just with apple. Is there a specific reason for it?
AAPL's trend is generally up but I trade Calls on a few other stocks as well. LEAPS are best suited for long-term growth stocks.
@@TheFinancialMinutes Thank you for the reply. Is the contract restricted only 100 units or can we buy more lots if we want?
Hey man great video! What do you think about LEAPS on the ARK ETFs?
Have seen a lot of growth on that. I went with buying synthetic long stock on it. And it works extremely well.
Hey bro, thanks for sharing your knowledge, would it be even more profitable if I actually exercise the option and then buy the 100 shares and sell then the same day?
Cheers!👊🏻👊🏻
Exercising options is generally a waste of money. When you exercise you give up all the extrinsic value for your option and usually you’ll buy the stock at a breakeven price above the current share price.
Investor picking a direction!!! Is not a guaranteed strategy! And No stocks doesn’t go up all the time.
Not all of the time, but you don't need to time the bottom perfectly with this high volatility. You're unlikely to ever buy at the very top or very bottom of the market and you have to choose wisely when to get out.
How about now, with the market so volatile, how's your win rate?
Around 90%
Well said so many videos on this topic yours is by far the most salient.
Glad you enjoyed it! Let me know if there's anything you want to know more about this topic or if there's any other topics you'd like me to cover
One question I still have probably bc is dense lol but how do leaps compare to real short term options in terms of extrinsic value - or is better to ask questions a there a big difference In delta? Again great work.
If you BTO a LEAP on a stock with a 1.5 year DTE and it remains below your break even point for the entire time except the final 2 months before expiry, and then it finally rises slightly above your break even point, could you be he. STC the option and make a profit?
If it’s above your breakeven 2 months before expiration, you should be at a profit. Whether you want to take that profit or let the option expire ITM to exercise your right to buy the stock below the current share price is up to you. Personally, I would take profit and use whatever money I made in the trade to buy more shares.
and along the way you can sell and buy back short-term OTM calls that will probably lose value due to time decay and/or short-term lowering of price.
Good stuff, subbed.
Thanks 🙏🏻
great stuff, how is doing now with LEAPS options?
I've avoided LEAPS for the most part since 2022, but recently got some profits from GLD and took a loss for a SPY Put LEAPS
Great video! Greg, what's your thoughts on either a long straddle or strangle leap if you're not sure of the direction the stock is going?
Long straddles and strangles are great if you're expecting a lot of volatility but not necessarily if you're unsure about direction. If the stock doesn't see a lot of movement, both of your long options will lose value on implied volatility and time decay!
@@TheFinancialMinutes Thanks for the reply, it makes sense! I'm trying to figure out a strategy that would work long term where I don't have to check on them daily.
Perfect explanation 💯
Do you think LEAPS are better for ETFs? I feel like for people who don’t want to deal with high volatile stocks, Leaps (specifically ITM leaps) are good cause they mimic price movement of the underlining stock price.
It depends. Some stocks are definitely well below where they should be making for a good opportunity for LEAPS that may outperform SPY or QQQ LEAPS.
SPY $300 Call September 17, 2021
$5491 - cost in this video
$12,534 - worth as of June 14, 2021
🤩 that’s crazy. LEAPS 🚀
So basically its a losing LEAP right? Since you had 12K June2021 then dropped to 5K Sept2021
@@tradeopschannel9893 you know i meant june 2022
Aways be the seller of the options, unless of course you have an insider information. Sell the time.
I am the buyer and still make bank 😈
He’s back!!!
Ayyy and I got my main hypeman! What's up Brandon? How did last week treat you in the stock market?
Greg Talks Money - Stock Market & Options Trading pretty good man, my portfolio is staying solid! How have you been?
what a great video - thanks man!
Thanks Johnny! Been using it a lot recently with the cheap contracts on the table rn.
You are greattttt….
Thanks 🙏
Subscribed. Thank you.
Thanks for your support 🙏🏻
I'm new to stock. When the stock you own start making profit before the expiration date, is that when you exercise your option? You show how much money you profit at the end but Im not sure when you exercise the option.
Exercising an option in most cases doesn’t make sense, more times than not, you’ll make more money selling the options instead
When do we take the profits? Should we wait until 90 days?
Awesome video man
Glad it helped! 😊
Thank you for this video, never knew this was an official strategy, how long are you holding these plays? It seems that if a stock is stagnant that the theta would still catch up to you.
It really depends on how quickly the stock moves, as you said if the stock stays stagnant a while you could lose money on the Theta but recently stock prices have been making bigger moves so the Delta on my options typically outweighs the time decay.
@@TheFinancialMinutes Gotcha, makes a lot of sense, thanks for the answer!
It def makes sense and gives a great insight on the thought process, thank you!
I like your content. I just saw your newly published video on LEAPS. You have a radical different POV from this video vs. your most current LEAPS video. In this video you claim making $9k on this strategy. Please explain why you’re no longer a LEAPS supporter?
The chop in today's market don't make LEAPS worth the investment compared to 2020-2021 when everything was going up
I bought an apple leap call at $100 strick ending june 2021.... should i just keep holding?
Oh yeah! You have a ton of time for that to gain value. What price did you get the contract for?
Greg Talks Money - Stock Market & Options Trading $3659
Its now only worth $2358 and my delta has dropped from .85 to .7
@@LoxoVe You still have a *very* long time for these contracts to go your way and make a lot of profits on them. I have some $140 1/15/2021 apple calls that I'm also holding. I originally paid 10.65 for the first contract, then it dropped I bought another one for 7.10, and finally one for 5.50 on sep 9. My average cost now is 7.75 for these 3 contracts and I am planning on buying another one today to bring it down a bit more. You're still in the money and imo have nothing to worry about - buy another contract if you can afford to or if not just ride the wave back up.
How would u protect ur leap calls ? What sort of hedging would u do ?
You could sell calls against them using the "Poor Man's Covered Call" strategy
A 6 month call isn’t a LEAPS
Great video as usual
Thanks Jason 🙏🏻
It gives a good idea, I appreciate your video,.
How you deal with time decay, profit and loss?, time frame?
Time decay is negligible for a LEAPS but if you want to protect against it you can sell calls using the poor man's covered call. P/L is a personal decision but I base my exits on price targets & fundamental analysis. Time frame / expiration date is 1-2 years.
@@TheFinancialMinutes zebra better than leaps?
@@nixodian I think high Delta LEAPS are better in this market. 0.90 or more to be safe.
@@TheFinancialMinutes 1 or 2 year 90delta leaps? Opinion on 1 or 2 yr zebra? Either way no dividends 😕
@@TheFinancialMinutes 1 or 2 year 90delta leaps? Opinion on 1 or 2 yr zebra? Either way no dividends 😕
I wonder if you have put all your money buying shares in sometime like NVDA and hold the shares that last 5 months… If you want to get rich place all you bets on one company … If you want to play risky put them all on LEAP for Amazon or Apple
I prefer diversity across many stocks and strategies for risk tolerance purposes. I just posted a video revealing my portfolio with all shares, cryptos, and current options i’m holding.
Thanks for sharing these gems bro🔥
Happy to help!
OTM LEAP options 25-40 Delta thoughts, to take advantage of leverage as underlying accelerates towards to make it ATM versus the typical 70-80 delta LEAP option for calls?
The issue with OTM LEAPs is that Theta decay will more significantly affect their value. If you have an equally deep ITM and OTM call, both will have roughly the same Theta value, but the OTM call will be worth significantly less, so Theta eats away at a larger % of its value as time passes.
You don't sell any calls against the LEAPs?
I've made a few videos on this strategy, here's the latest one
th-cam.com/video/I4D5jB7a7tg/w-d-xo.html
One question I have is when should I fill since there is a gap between the bid and ask price? Should I pick a price in the middle?
If you want to get a good price, set your limit orders below the market value. If you want to get filled quickly, set it for or above market value!
Is NO ONE gonna talk about how Apple is 375 in this video when in reality it’s never been that high? Am I missing something or is everyone else dumb.
This was before Aug 28 when AAPL had their 4-for-1 stock split
Can you make a template of your google sheet that you use to track your options. That would help so much, thanks!
Wouldn’t it make sense to sell a monthly calls against your Apple leap to lower your cost basis?
The theta/ time decay on monthlies are way too high for my liking. I like to keep it as far in the money (high delta) and far out (low theta). This also gives you more time for the option to go your way.
Greg Talks Money - Stock Market & Options Trading don’t think you caught that . He said turn your leap into a pmcc to hedge it.
@@mikeJones-zo8si Ah yes! A poor man's covered call is a great strategy for bringing down your cost basis but picking your short option can be tricky! If you don't choose correctly you could actually end up losing money on both your options. I might make a PMCC tutorial video to explain this soon!
Thank you!
You bet! Thanks for your support 🙏🏻
Greg I bought AAPL Call Leaps expiring on sept 17, 2021 122.5 strike price... im down 30% right now. i know its still a long way to expiration and it might bounce back... can you give me tips on at least minimize my losses (if it didnt bounce back) or any strategy going forward? this is my first leaps option and i did the 6 months ITM. I'm super risky, love risks. not so worried about the amount i will lose ($500 right now, $1500 total) worst. I am more excited with the learning on this one. any opinion is welcome. just wanna learn more. thanks!
If you kept this call you made some good money. Apple stock was sitting at 150 that day
Good shii got a sub
Hi Greg. Why not consider a long dated synthetic call option like your leaps with 6 to 12 mths DTE? Probably end up not paying any prem or even receive a credit, with little/negligible theta decay.
I'll look into that strategy! Thanks for your recommendation 🙏🏻
Great video. However, I wish the audio was little louder.
You might wanna clean your dirty ears 👂🏽
I hit a like button I have just found ur channel u seem to be a young smart guy I am a newbie and an old man who is interested in options trading for this u do not have to worry about being assigned also do u trade a lotto option trade in and out very quickly on expiration date and do u watch any vaccine stocks closely I do watch pfe anwya keep up ur great work trying to learn from a smart young guy like u. Aloha and Mahalo from Hawaii
Thanks for stopping by, Bronson! I'm not particularly interested in vaccine stocks just yet but I do think there's a lot of potential in Moderna specifically, likely being the first to put a vaccine out. I typically hold LEAP options for 2-4 weeks at a time depending on how the market is moving but with the recent crash it looks like I may be holding for months, but in general, I'm not looking to be assigned on these options.
@@TheFinancialMinutes Mahalo. Keep up ur great work. Stay safe
@@TheFinancialMinutes I try to stop by ur channel whenever I can. I am very new at this. Just wonder. Being assigned is not my choice isn't it. What is the best way to avoid to be assigned also Have u used mobile brokers like. We bull and Moomoo any opinions on them as a newbie I need to study much more before trading options but i am interested in LEAPS. Mahalo. Old man from Hawaii
As the buyer, you have the right to execute your contract but not the obligation. You're given this right when the option becomes in the money, but generally, you won't want to execute it because of the time value that's left. If you let the option expire in the money, then I believe it will be executed on your behalf. I'd definitely recommend Robinhood as a new investor because they're the easiest to use but I've heard good things about Webull as well. Personally, as an advanced options trader, I'm looking to move to Tastyworks.
@@TheFinancialMinutes Mahalo i am a newbie who will try to learn from a young smart guy like u Mahalo for ur time Have a great investing on election day or going forward
Stop loss is so important! I really pay attention to your videos, can’t wait until robinhood opens up here in Germany (hopefully not long now). Also thank you for your open discord channel. It is always nice to be in a community of like-minded people🏆
The Discord is one of my favorite parts of being a TH-camr, being able to connect with my fans on a daily basis is a blessing. I agree, stop loss is important, but typically whenever my option drops in value a lot I just buy more of them. As long as the stock I'm following doesn't break the pattern I'm anticipating, I'll hold until I turn a profit.
Luv it just found you tonight!! Ima do my 1st Leap soon, soon as in xmas time. You can create TRUE wealth like this... I luv it. We appreciate ur Time... TyTyTyTyTy😄💵💵
Thanks Carolyn 🙏 I wish you the best and many profits!
How was it doing for you, Carolyn?
@@ron2040 Hey Ron haven't done my be LEAP yet... Still focusing on "becoming consistent"... God l need to so bad! Then lma do a LEAP! Have u done one?? N ty🙏 for ckn on me😘
@@carolynsandberg3144I haven't done so but as soon as fed is releasing news about interest rates hikes.. It will be a good timing to enter
First off, great video, thanks a lot.
What is your exit strategy for LEAPS in that case?
Lets say you've bought the Apple call for $480, expiring 1/21, when do you decide to exit?
Do you wait closer to expiration or sell this option 45days-60days before expiry date?
Can you really actually make week by week profits using leaps? Seems skeptical, whats your take on this? I am not ultra experienced with LEAPS but it doesnt seem like this will work for quicker returns compared to waiting out 6+ weeks.
I've been profitable every week for the last two months at least. I spread myself out usually among ~3 options at a time in case one doesn't perform as quickly as expected.
My exit strategy is simply to sell when I believe the stock is overvalued, usually based on the 180d 4h chart, if the RSI is above ~70. This usually caps my gains, especially in the case of Apple, but what I learned from that is to hold multiple options in case the stock keeps running I can sell them later on.
How quick you turn a profit really depends on the stock and that's why I prefer using this strategy on tech stocks. For AAPL, it took me around 2-3 weeks to get a 50% return but for SQ it took me 3 days to get a 100% return, it really depends on the timing at which you buy these options, and how quickly important news or updates come out on the company that makes them surge in value.
I've made almost 60% returns over the past month using this strategy in combination with my long term portfolio which makes up around half of my investments.
@@TheFinancialMinutes Nice, thanks for the explanation. How far out are you usually buying these options (expiry)? 6 months? Anything more than 6 months seems to have a chance of not being able sell since there might not be open interest so thats why I am wondering.
@@MadhavanDawg Yeah, 6 months out. Right now most of the options I'm buying expiring January 2021. I don't really have an issue buying these options unless I'm trying to buy it closer to the bid price but you shouldn't have any trouble buying it at market price or slightly above!
@@TheFinancialMinutes Hi Greg, I am not too experienced, but I was considering buying an AAPL $140 Call for December 8th, its being sold for $898 right now and I was strongly considering it. Its around $10 out of the money.
My plan is to sell around 45DTE, but I am wondering if this is a risky move? Are OTM calls generally a bad idea?
Thanks!
deep in the money LEAPS is working for me :)
Definitely the safest! I like to stay a few strike prices from the money to bring the cost down. How much do you usually pay for your LEAP options?
@@TheFinancialMinutes market price just like everybody else lol
“It’s not coming down anytime soon”
Famous last words ☠️🤣
Umm, is no one else insanely confused as to how APPL is at $475 in this video when it has never been at $475.
4:1 stock split on 8/31/2020
Very true
I am 64 years old with a heart condition. Leaps are not for me .
the question, can you buy leaps calls in the money and then sell calls in indexes such as spx and ndx ? For example spx price is 4k, I will buy calls 2 years out strike price 3k and then sell calls weekly or 3 times weekly in spx? i know I can do that in spy but not sure in SPX or NDX. Thanks
I don’t see why you couldn’t use it on SPX. I think it would even have a slight advantage since you don’t run early assignment risk.
Invest in a lint roller
Good video though
Thanks 🤣
What’s usually the rate in which you have to wait before taking profits
Depends on the markets and the movement of the underlying stock. Sometimes I can get in and out within a few weeks other times I have to wait months for the next big catalyst on the stock.
@@TheFinancialMinutes I see, thanks for the response
The more money you have the higher chance you won't lose 💯
True to some degree, but all options have some chance at expiring worthless so play it safe
Soooo just naked calls but long term? Seems a little light on the risk aversion. If that stock dont move the way u thought it would over 6mo than youre out that whole 700
That's why it's important to buy low and watch trends closely
one thing i dislike about LEAPS is that if after you buy, and you go into a bear market, your breakeven price to profitability is shifted a lot due to time decay. I bought a LEAPS at strike price of $119 but right after that ther was a 2 months bear market. In the end, in order for me to profit, the price needed to reach $125 for me to start seeing profit on it. So it's kinda suck if your LEAPS is not long enough.
Well that's really the case with any option strategy and ofc the longer you set your exp date the better chance you have at recovering your loss. Also, your breakeven isn't the point at which your option starts seeing profit, you can profit well before that point depending on how much time is left until expiration and how much you paid for the option. If a stock is $1 below your breakeven but you bought the LEAP when it was trading $5-10 below your breakeven and your option still has plenty of time left, you should be at a profit.
hi can we have a copy of your option trading template?
How does implied volatility play into this?
Implied volatility on LEAP options isn't much of a factor. You might see a 5% drop in IV after and earnings report comes out which doesn't take away that much value on the contract.
@@TheFinancialMinutes Also on your sheet I was just wondering how long you usually hold for?
You are happen to be in the strong run market. If the market has large correction, your profit will be wiped out quickly.
It actually works even then too you just have to adapt the stocks you buy. My UVXY long calls have been pretty successful since the huge correction we saw a couple weeks ago.
This is a great strategy . Give update on this boss
Brilliant smartens Nd simple 3 in 1
Nice video Greg. I just started this using deeeep in the money calls 1 year out. I'm selling short term calls (otm) for some extra profit. The underlying jumped up crazy fast and I had to buy back my short call for a loss of about $500!😖. Fortunately the large delta on my deep itm call made $200 more than I lost on the short call. Does anyone know if there is a way to make my robinhood account automatically buy back a short at a specific price in case I'm not able to follow the market?
You can always set a limit order and have it "good till canceled" instead of "good for day"
That's the caveat when it comes to the poor man's covered call (which it seems like you were trying to do) in that if the underlying stock gets too volatile you'll lose out on some profits but generally if you pick a solid and steady stock, PMCC is generally a good strategy!
3 months. It's fail proof. Thx. 😐
May I know the link to your discord group ?
For some reason TH-cam is not letting my post it here but its the first link the the description of the video
I don't have a record of the Apple stock ever being worth that much. Like, on my Robinhood, it shows that it's never even broke past $200....?
This was made before their 4-to-1 stock split in September 2020. Their price was cut from around $500 to $125 and you would own 4 shares for every single share owned before the split.
great content. good job man. keep the good work 👍👍
Thanks a ton 🙏
How long did it take you to make the 9000 dollars?
A little more than 5 months
What happens in a Crash???
If the stock crashes your option will lose its Delta value for every dollar the stock goes down and if your option expires out of the money it becomes worthless
@@TheFinancialMinutes ...so...how can you say "I never lose money" ???
@@hubertkittlitz6150 Because I’ve never lost money using this strategy.
...ok...🤔...dear friend with Respekt... we both know that there is a small but important difference between "i have never lost money" and "how i never lose money" and we also know that there definitely are enough people outside there who automaticaly think of a free-lunch in the future...
@@hubertkittlitz6150 Which is why I made an update on this strategy highlighting the risks, you can check it out on the channel 👍🏻
As someone else mention... the Poor Man's Covered Call is a much better strategy than buying leaps. Buying options is usually gambling. Been in options for about 6 years, I have only been a buyer once, in March of 2020 I bought a SPY straddle ATM. It just made sense.... and i made a good return, because that period was a Black Swan event. Otherwise, it is gambling..... and; noobsville.
I made a vid on PMCC and they’re best fit for low volatility environments. Best to take advantage of a huge bull rally (like we saw in August and October 2020) with long call options otherwise you’ll continue losing on your short leg for a PMCC
@@TheFinancialMinutes You know what Greg, i realized that you and most of your viewers are probably young, and at the ripe age for high risk/ high reward trading. I'll carry on with my 'old man' covered calls, credit spreads and selling strangles to you guys in my boring Delta neutral portfolio; lmao. Take care, and good luck all.
All depends on risk tolerance. I only use around 10-15% of my account to trade options and don't mind being a little risky. Spreads and covered calls are excellent strategies as well. Wish you luck brother 📈
Since when was Apple almost $500?
Pre split, they did a 4-1 stock split in September 2020
Ha! This video didn't age well.
Still 100%. Haven't traded LEAPS in months besides GLD during the recent dip.
@@TheFinancialMinutes If you're 100% it's not based on the strategy outlined in this video. This worked great in a bull market... but everyone's a genius in a bull market. Literally any strategy worked.
Regardless, leaps take some risk away but not all. And because they cost more, suggesting this to beginners without defining risk is dangerous as the higher cost can be a higher % of a beginner's portfolio.
@@patelkedar I've made a couple other vids clearly defining the risk. I'll link them to this video for the beginners 👍
If you have never failed at trading options, you have not been trading very long.
Never said I had never failed, in fact, I even highlighted some of the trades that went south on me
You're not talking about selling these options naked, right? So I also need the 100 shares to be making money
LEAPS are a long strategy, no need for collateral just the cash to buy the option
@@TheFinancialMinutes if you Sell an Option you've got to have the shares. ..right??.... Truly- takes money to make money
@@It_is_Tyler Yes if you're selling call options you need 100 shares as collateral. LEAPS however is *buying* call options.
Thanks man I'm trying to learn options is so good of info
Thanks for your support 🙏🏻 Glad this helped!
"And I do, because it's apple"
"F" in the chat for AAPL not going up for the past 3 months
Not much of a strategy if the plan is to just buy a call with expiration of 6-12 months. Also, not a 100% guarantee in any way. This is bad info and can lure people to do this if they don’t have a better understanding of TRUE options strategies.
Today was an awesome day doing calls on Tesla. Did you get a piece of the pie?
How do u do it? Example?
Since it dropped so heavily..the options premiums dropped along with it even the waaay out of money ones. So pretty much any option you bought yesterday morning during low 600s has 4-5x. Especially if you held them up to 740 today.
Aloha Greg - Im in your Discord group with the Username Pacfin. Ive send a Friend request to you. Anyway, can you do a 6 Month Debit or Credit Spread to Lower your Cost basis on Expensive FAANG Stocks?
Lol funny to see how he thinks he knows everything before the market tanked
I don’t know everything, that’s unrealistic
You know you're in a bubble when there are tons of kids giving "advice" on "100% win-rate" strategies and other nonsense. "NEVER lose money in options"......Jesus fuckin Christ.
Lol someone sounds salty Franky!
It’s ok not everyone will have success in the stock market, everyone oughtta know that. I’ve been in doing this for around 3 years and this has been MY experience not guaranteeing that it will be yours or anyone else’s.
No such thing as a strategy that's guaranteed not to lose money. BS
Never guaranteed anything, this has been my experience using the strategy
@@TheFinancialMinutes Now you're lying again. The title for the video is literally "How to NEVER lose money trading options".
@@djayjp I'll change it to how "I" never lose money, how's that?
@@TheFinancialMinutes Still highly misleading as you haven't experienced a sustained bear market that stagnated for years. You could literally buy in well before the dot com bubble and the price wouldn't come back for 8 years or so....
The truth= "I haven't lost money yet using this strategy."
There is no such thing as perfect trade for all. Options do give you more advantage than just playing stocks. I have been trading options for 20 years licensed broker. If there was then he should be billionaire. Most consistent profit for options trading came from covered calls and I know this by looking at all the accounts. LOL
As a "licensed professional with 20 years experience," you should know not to put all your money in a single strategy and such, I'm not a billionaire. I limit long options to just 10% of my total net worth for risk management.
Wonder how his 100 percent hit rate was during this last pullback in the markets... 😂😂
Still 100%... awkward 😂