is anyone eyeing any LEAPs currently or waiting for a pullback?

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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.

likesmart

Meta

funny

What’s a leap?

An option contract that has over a year to expiration.

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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

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I started trading during Covid crash. Started with equities and eventually moved to options. Earlier lost a month's salary and then lot more trying to recover it. Currently have lost my yearly salary worth and it's affecting all aspects of my life (job, marriage, health). I have tried to convince myself to consider it a loss but always get back trying to recover it.

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Otherwise your sinuses will become increasingly VIX allocated over time.

Maybe that's ok.

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Uh this could get bad fast if this holds through open. Protect your downside if not already.

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