How many of y’all use LEAPs on ETFs or Mag7 stocks?
Last year I started allocating some of my monthly “dump into VOO” to LEAPs, I’m wondering why I haven’t been doing this for the last decade

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I don't go as far out as a LEAPS security in most cases. I gonout 120-160ish days. Obviously that means a JAN Expiration 2 months of the year, but only coincidentally.

If you buy a long contract, either a LEAPS or some other long dated option, you can also sell calls against them.

This is like a covered call. By using a long dated option and selling a short dated option, you gain leverage.

Using your LEAPS strategy on SPY, for example, you could buy a 550 Call for 17 JAN 2025 for $32.40. This has a delta of 63. You could sell a 19 JUL 2024 for $2.00. It has a delta of 31. You can repeat this every week or 2. Rolling to higher strikes each time. Or lower strikes if the price drops.

Over the 196 days till expiration you can do this 14 times, giving you $28 roughly. With the $4.64 of extrinsic value your long bet is about totally covered. If it goes up, your long is free and any rise is price is yours with virtually no cost.

This is a diagonal, my favorite trade.

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Ok, do you know what shorts are? Intrinsic and extrinsic value? Rolls? Spreads in either time or strike value?

My description was a spread in both time and strikes. It uses the shorts to cover the extrinsic value so don't lose money buying a long dated call if the stock price doesn't move. It reduces risk and increases returns for someone buying LEAPS or other long dated options.

Whats the best way to learn to trade options?

Well, you are assuming these stocks will keep going up.

Options have a shelf life, you have to get the timing right.

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