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Additional Posts in Option Traders & Investing
Potential opp on the short side for TSLA?
- X
3/29 Thread (General):
2/25 Thread (General):
Growth stock ER week

Earnings season is here!

$DPZ 370c 3/27
3/2 - (specific symbols)
10/06 Thread (BC):
Best oil stock to buy right now?
anybody watching $SRNE?
Thoughts on airline stocks? Good time to get in?
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Mentor
LEAPS are Long-term Equity AnticiPation Securities. They are simply option contracts dated at least 366 days out. Most optionable equities will have January options listed for the January monthly option for the year beyond the following year. Currently that is the JAN 25 option. Many have quarterly beyond that, and most have a couple JAN options, such as JAN 26 & JAN 27.
The advantage of LEAPS is that if held for 366 days they can be treated as long term capital instead of ordinary income. That only makes sense if you think the market is going to go sideways or slightly up. For big up markets the slow theta decay but large delta would lead most investors to roll up to maintain the same delta exposure with less capital, or increase the number of options with the same capital.
They are also used in Condors as the base for a sideways theta play.
Meta
What’s a leap?
An option contract that has over a year to expiration.
Disney
Big oil
For the oil sector, we’ve had underinvestment in oil and gas production for several years and renewables plus EVs are not set to cover demand growth for several more years. Investors are also demanding capital discipline with CAPEX mostly remaining insider of free cash flow and adventures in green energy are getting hard looks to ensure returns are possible.
For healthcare, there’s still a significant backlog of deferred treatments from the pandemic, labor tightness is easing so capacity is able to grow, and even in a recession people should retain access to health insurance due to Obamacare. So in a recession healthcare could provide a rare growth sector.
waiting to exhaust the rally 📉🤷♂️
Bitcoin miners / heavily BTC exposed companies