If anyone wants notes from the video, I wrote these out. 1. Buy deep in the money. - Provides higher leverage. - Results in a lower break-even point at expiration. - Break-even calculation: Strike price + premium paid. - Lower strike price leads to a lower break-even point.
2. Ensure liquidity. - Target a delta of 0.75 to 0.85. - Avoid options with wide liquidity spreads (e.g., $500 wide). - Evaluate metrics for liquidity: - Open Interest: High open interest (e.g., over 1,000 contracts) is favorable. - Volume: Reflects the number of contracts traded daily; can be low for LEAP options. - Bid-Ask Spread: Tighter spreads indicate better liquidity. 3. Choose long expiration dates. - Recommended: At least a year and three months out. - Benefits: - Potential for long-term capital gains tax rates. - Buffer against exponential theta increase. - Sell three months before expiration or roll out the LEAP option. 4. Be prepared for volatility. - Expect significant fluctuations in LEAP option value. - Monitor the overall trend for an upward regression line in a bull market. - Maintain around 10% of your portfolio in LEAPs to manage risk. 5. Avoid over-allocating. - Keep LEAP options allocation around 10% of your portfolio. - Avoid putting your entire portfolio into LEAP options to manage risk. 6. Buy on solid companies. - Prefer Blue Chip stocks and well-known companies with high liquidity. - Examples: Apple, Google, Microsoft, Amazon. - Avoid speculative or lesser-known stocks. 7. Hold or double down during dips based on risk tolerance. - Hold: If risk-averse, hold through dips. - Double Down: If risk-tolerant, consider: - Buying more LEAP options. - Selling underperforming options and refreshing leverage with new deep in-the-money options. 8. Avoid panic selling. - Do not sell in a panic if the stock goes down. - Options for handling dips: - Hold and let the LEAP expire if necessary. - Sell and buy new LEAP options. - Buy more LEAP options. 9. Monitor liquidity and extrinsic value. - Ensure options remain liquid to facilitate easy entry and exit. - Calculate extrinsic value: - Intrinsic Value = Stock Price - Strike Price. - Extrinsic Value = Option Price - Intrinsic Value. 10. Sell for profit if liquidity dries up. - Sell if liquidity deteriorates significantly. - Aim to sell three months before expiration to avoid theta decay. - Consider exercising the option if extrinsic value is low and liquidity is poor.
If you want a notes on the notes: 1. **Deep In-The-Money Options:** Higher leverage, lower break-even. 2. **Ensure Liquidity:** Delta 0.75-0.85; high open interest, volume, and tight spreads. 3. **Long Expiration Dates:** 15+ months out for gains and less theta decay. 4. **Prepare for Volatility:** Keep LEAPs at 10% of your portfolio. 5. **Avoid Over-Allocation:** Limit LEAP options to 10%. 6. **Buy Solid Companies:** Choose blue-chip stocks. 7. **Manage Dips:** Hold or double down based on risk. 8. **Avoid Panic Selling:** Hold or buy more during dips. 9. **Monitor Liquidity & Extrinsic Value:** Keep options liquid; track values. 10. **Sell if Liquidity Declines:** Sell before expiration or exercise if needed.
I made over a million dollars trading LEAPS based on what you taught us years ago. I’ve been using it ever since that time. Thank you for spreading your knowledge. It changed my life and my family’s lives.
8:48 bought LEAPS on Tesla back in February with 2 years to expiration, was down almost 50% by April. I know I'm always early (never time the bottom perfectly) so I always make sure to buy the furthest expiration I can afford. I didn't sell in April because why would you sell LEAPS at a loss, especially when there's so much time to recover and as of today the position is up 108%.
Hey Adam i want to say you really changed my life. I was a new trader in 2020 and lost the little bit of money i tried to invest. I was short sited, and wanted quick money without having to invest a good amount into a good company. I traded short options on meme speculative stocks and paid the price. but as of September 2023 i changed my strategy and became more patient, I seen your video on Leaps. and chose great reputable companies. I set my strike prices for a year or so out and I took my time picking stocks, bought low on red weeks and i just waited and OMG Im actually winnin! Started in September 2023 i got access to my rollover IRA from my previous employer it had $2,000 in it, and now its sitting at $10,000 as of todays Bell. Ill try to keep growing it. and Thanks for all the videos I hope your health improves.
I'd like you you to evaluate Nancy Pelosi's trades. She does long-term calls. Every congress person has to report their stock trades. SO GLAD TO SEE YOU ARE BACK!
Hey Adam I'm glad you're feeling a bit better! I've been trading big tech calls expiring in 2026 and just rolling the gains into new calls, and just in the past 7 months I'm up 260% thank you for helping me build generational wealth
Dude I learned options from you in 2021 and have been running the wheel and also selling covered calls for passive income over the last 3 years and have made over 350k doing about 20 minutes of work a week for set ups and everything is passive and perfect. thanks for all your tutorials back in the day, brother. sidenote: I'm so happy you are feeling better. We have chatted a few times over the past couple of years and I have witnessed the horror you and your bro have been through, I was seriously thinking it looked like you were at the end of giving a shit in the video you made months back when you were showing where you grew up and the beautiful landscapes. I'm not a religious guy, but I was praying to something to watch over you guys. I'm so pleased to see that you have found something that is finally helping you, you have done a complete 180 and it looks like this nightmare might be coming to an end. thank goodness. lastly, how is bro doing? is this treatment also working for him? good luck to you guys.
Thanks, man. I’m definitely in significantly less agony than I was even 1.5 months ago. My brother will be going with me to Denver on the 18th to get his Cytoxan infusion, so he’ll be feeling better soon, too. Appreciate your prayers. Throw one in for my vision, too? It’s all messed up and ain’t gettin any better. Glad to hear from you. Appreciate your comment.
Man glad to see you doing better and putting put content again always good to see good people beat a challenge in life and continue to do what you like
Hell yes! So stoked to have you back. Great video by the way! I just want to double down on what Adam said, don't buy LEAPs in shit companies[1]. Doing it with good blue chip stocks is 100% the way on LEAPs. Also, when the market and the underlying are both at all time highs-- at least wait for a small pullback of 5-10% on the underlying. They happen more frequently than you'd expect. *Finally* when that pullback happens do not try and catch the bottom, be patient, and catch the ride up. It's easier, safer, and will payout just as much (or more if the market decides to dump as a whole). [1] We're all filthy degens-- a few YOLOs, as long as you can afford to lose the money won't kill ya ;)
I made so much money from learning from your videos. My puts were exercised multiple times, I closed positions out of panic, I held calls for half a year to return the money, I rolled, I closed in loss to move money to something better. But I’m far better and comfortable to write options and estimate if to roll or close. Thank you alot!
Yoo the legend Adam is back. Because of your vids, I started a margin account 4 years ago and started doing the Wheel strategy for monthly income :) Keep thriving my guy
I lost money on LEAPS because I got unlucky with the last market crash timing. But I listened to you and didn’t over allocate so it didn’t hurt too much. I’ve also made money on LEAPS over and over. Overall your strategies work for me. You sound great, hope you keep feeling better.
I clicked on this cuz I wanted to see me boi doing. Most importantly we don’t lose him. He seems like he going through stuff but he’s hanging in there for us and his family!
This was great. Thank you so much. Is there anyway you could go into detail about the 3 alternatives you mentioned when the expiration date of your leaps starts to draw near? Specifically the costs, etc. associated with rolling over you position? As well as the option of "refreshing leverage by selling and buying a new LEAP option with a lower Delta." We could really do with a detailed video analyzing the mechanics of these alternatives, preferably with examples! Pretty pleassseee????😭😭😭😭
Great to see you back and healthy again Adam. One tip for me to avoid paperhanding is not check my portfolio every single day. I set up alerts for some target stock prices on Yahoo finance and % gains on robinhood and only try to make decisions based on these milesones.
Frankly the two biggest problems I see with traders who lose money is 1) they over-allocate or YOLO everything. 2) they treat LEAPS like short dated options plays. The strategies are nothing alike. Honorable mention to #3 - not respecting the break of the trend or your stop loss
You actually made me 300k. I had 27k in my trading account 3 years ago when I started trading options. Your options videos were so clear and informative that they gave me the confidence to start trading the wheel and doing pmccs. I ended up buying leaps in a mid tech company called Nvidia and have rode it up right through the 10 for 1 split. That ride is responsible for the majority of the trade funds I have today, but I may not have seized the opportunity without your content. Thanks, man. Glad to see you back.
Actually a suggestion: Would love to see a real example of picking a good quality leap in an upcoming video. Like a decent SPY or QQQ leap, what Greeks to look for etc
I held this youtube subscription for 2 years, and I hope you're back for good!! PROFIT!!!! Edit: I don't even trade options but I like seeing this guy pop up in my feed with regularity.
Now with talks of rate cuts on the horizon - one of your videos looking back historically, the market usually runs up until the rate cut actually occurs...then we're looking at a potential dive. Is that still kinda the outlook at this point? Maybe a vid topic revisit? Good to see you...and that outro still slaps.
As a value investor, LEAPS are terrific. Let’s say a stock is selling at a discount to intrinsic value and the market hasnt recognised the value of the company, then LEAPS is fantastic.
If anyone wants notes from the video, I wrote these out.
1. Buy deep in the money.
- Provides higher leverage.
- Results in a lower break-even point at expiration.
- Break-even calculation: Strike price + premium paid.
- Lower strike price leads to a lower break-even point.
2. Ensure liquidity.
- Target a delta of 0.75 to 0.85.
- Avoid options with wide liquidity spreads (e.g., $500 wide).
- Evaluate metrics for liquidity:
- Open Interest: High open interest (e.g., over 1,000 contracts) is favorable.
- Volume: Reflects the number of contracts traded daily; can be low for LEAP options.
- Bid-Ask Spread: Tighter spreads indicate better liquidity.
3. Choose long expiration dates.
- Recommended: At least a year and three months out.
- Benefits:
- Potential for long-term capital gains tax rates.
- Buffer against exponential theta increase.
- Sell three months before expiration or roll out the LEAP option.
4. Be prepared for volatility.
- Expect significant fluctuations in LEAP option value.
- Monitor the overall trend for an upward regression line in a bull market.
- Maintain around 10% of your portfolio in LEAPs to manage risk.
5. Avoid over-allocating.
- Keep LEAP options allocation around 10% of your portfolio.
- Avoid putting your entire portfolio into LEAP options to manage risk.
6. Buy on solid companies.
- Prefer Blue Chip stocks and well-known companies with high liquidity.
- Examples: Apple, Google, Microsoft, Amazon.
- Avoid speculative or lesser-known stocks.
7. Hold or double down during dips based on risk tolerance.
- Hold: If risk-averse, hold through dips.
- Double Down: If risk-tolerant, consider:
- Buying more LEAP options.
- Selling underperforming options and refreshing leverage with new deep in-the-money options.
8. Avoid panic selling.
- Do not sell in a panic if the stock goes down.
- Options for handling dips:
- Hold and let the LEAP expire if necessary.
- Sell and buy new LEAP options.
- Buy more LEAP options.
9. Monitor liquidity and extrinsic value.
- Ensure options remain liquid to facilitate easy entry and exit.
- Calculate extrinsic value:
- Intrinsic Value = Stock Price - Strike Price.
- Extrinsic Value = Option Price - Intrinsic Value.
10. Sell for profit if liquidity dries up.
- Sell if liquidity deteriorates significantly.
- Aim to sell three months before expiration to avoid theta decay.
- Consider exercising the option if extrinsic value is low and liquidity is poor.
Oversold big companies or etf
Wow; thanks for the effort you put into writing this out.
If you want a notes on the notes:
1. **Deep In-The-Money Options:** Higher leverage, lower break-even.
2. **Ensure Liquidity:** Delta 0.75-0.85; high open interest, volume, and tight spreads.
3. **Long Expiration Dates:** 15+ months out for gains and less theta decay.
4. **Prepare for Volatility:** Keep LEAPs at 10% of your portfolio.
5. **Avoid Over-Allocation:** Limit LEAP options to 10%.
6. **Buy Solid Companies:** Choose blue-chip stocks.
7. **Manage Dips:** Hold or double down based on risk.
8. **Avoid Panic Selling:** Hold or buy more during dips.
9. **Monitor Liquidity & Extrinsic Value:** Keep options liquid; track values.
10. **Sell if Liquidity Declines:** Sell before expiration or exercise if needed.
@@774471jr Thanks for the notes on the notes! Here's some notes on the notes on the notes.
1. Buy low, sell high. Repeat.
greatly appreciate the extra effort, man! 👋
I made over a million dollars trading LEAPS based on what you taught us years ago. I’ve been using it ever since that time. Thank you for spreading your knowledge. It changed my life and my family’s lives.
Love to see things like this
Same here. Sittign o 120k unrealzid gains. I did over allocate haha.
8:48 bought LEAPS on Tesla back in February with 2 years to expiration, was down almost 50% by April. I know I'm always early (never time the bottom perfectly) so I always make sure to buy the furthest expiration I can afford. I didn't sell in April because why would you sell LEAPS at a loss, especially when there's so much time to recover and as of today the position is up 108%.
Savsge
Sell now
Now your printing 🤑
@fishinfrenzy2544 whole portfolio +104% YTD 🤑📈
How about today?
Were so fucking back
Hey Adam i want to say you really changed my life.
I was a new trader in 2020 and lost the little bit of money i tried to invest. I was short sited,
and wanted quick money without having to invest a good amount into a good company.
I traded short options on meme speculative stocks and paid the price.
but as of September 2023 i changed my strategy and became more patient, I seen your video on Leaps. and chose great reputable companies.
I set my strike prices for a year or so out and I took my time picking stocks, bought low on red weeks and i just waited and OMG Im actually winnin!
Started in September 2023 i got access to my rollover IRA from my previous employer it had $2,000 in it, and now its sitting at $10,000 as of todays Bell.
Ill try to keep growing it. and Thanks for all the videos I hope your health improves.
Just discovered this channel! What videos by ITM do you recommend on LEAPs and in general? I’m about a month into this world.
@@svrenema6752I’ll say do leaps if you can afford it.
The legend returns, welcome back InTheMoney!
…and STILL the best RUclipsr out there on sage, level-headed advice on trading options. Glad to have you back.
fucking good to have you back
at least one person talking finance on this platform is not a complete clown
If you have your own tips for trading LEAPS, let me know in the comments!
Deep in the money with at least 2x leverage. 18 months. Reasonable break-even point.
Would like your opinion on my apple leaps
@@jonathanlangford4291 What delta meets that 2x leverage? Or it it more about the contract premium versus stock price for you?
Buy low, sell high. Never fails me.
I'd like you you to evaluate Nancy Pelosi's trades. She does long-term calls. Every congress person has to report their stock trades.
SO GLAD TO SEE YOU ARE BACK!
Good to have you back brother!
Hey Adam I'm glad you're feeling a bit better! I've been trading big tech calls expiring in 2026 and just rolling the gains into new calls, and just in the past 7 months I'm up 260% thank you for helping me build generational wealth
Dude I learned options from you in 2021 and have been running the wheel and also selling covered calls for passive income over the last 3 years and have made over 350k doing about 20 minutes of work a week for set ups and everything is passive and perfect. thanks for all your tutorials back in the day, brother.
sidenote: I'm so happy you are feeling better. We have chatted a few times over the past couple of years and I have witnessed the horror you and your bro have been through, I was seriously thinking it looked like you were at the end of giving a shit in the video you made months back when you were showing where you grew up and the beautiful landscapes. I'm not a religious guy, but I was praying to something to watch over you guys. I'm so pleased to see that you have found something that is finally helping you, you have done a complete 180 and it looks like this nightmare might be coming to an end. thank goodness. lastly, how is bro doing? is this treatment also working for him? good luck to you guys.
Thanks, man. I’m definitely in significantly less agony than I was even 1.5 months ago. My brother will be going with me to Denver on the 18th to get his Cytoxan infusion, so he’ll be feeling better soon, too. Appreciate your prayers. Throw one in for my vision, too? It’s all messed up and ain’t gettin any better.
Glad to hear from you. Appreciate your comment.
I'm so happy to see you back doing your amazing videos.
I hope you both are well on the road to recovery.
Sending love from Canada
Thanks! You are still the best instructor.
Thank you so much!
I missed the tips on LEAPs. Hahahaha I love the line "Let the LEAP die nobly" - mine did hahahaha. Great lesson to learn for me.
the GOAT is back!
GREAT to see you again! Prayers you're continuing to improve - and your brother. 👊
Man glad to see you doing better and putting put content again always good to see good people beat a challenge in life and continue to do what you like
SO GLAD to see you back!
I was just thinking about you the other day bro - glad you’re back
Great to Have you Back
It’s very nice to hear you speaking so well!
Congratulations on getting better!
Welcome back! You were very much missed. So glad to see you are feeling much better!
Welcome back Adam! Hope you get better each day!
Good to see you back, I hope your health is improving. It looks like it is, much more coherent in this video.
Glad to see your back bro
Hell yes! So stoked to have you back. Great video by the way!
I just want to double down on what Adam said, don't buy LEAPs in shit companies[1]. Doing it with good blue chip stocks is 100% the way on LEAPs. Also, when the market and the underlying are both at all time highs-- at least wait for a small pullback of 5-10% on the underlying. They happen more frequently than you'd expect. *Finally* when that pullback happens do not try and catch the bottom, be patient, and catch the ride up. It's easier, safer, and will payout just as much (or more if the market decides to dump as a whole).
[1] We're all filthy degens-- a few YOLOs, as long as you can afford to lose the money won't kill ya ;)
So excited for my favorite financial learning channel to be back!
Glad to see you healthy enough to make videos again!
The man and the myth. Welcome back🎉
I made so much money from learning from your videos. My puts were exercised multiple times, I closed positions out of panic, I held calls for half a year to return the money, I rolled, I closed in loss to move money to something better. But I’m far better and comfortable to write options and estimate if to roll or close. Thank you alot!
I get so excited when you post videos! Welcome back
So glad to have you back here Adam!
Happy to see you looking and sounding good😊
Glad to see you back ...
welcome back bro
It's so good to see you back in action, dude. ❤
Nice to have you back with us! glad you feel better! great advice as always!
Welcome back brother ❤❤❤ you’ve been dearly missed
Missed you, mate. Welcome back!
great to have you back! cant wait for more vids. hope all is well with you and your brother
hope you are feeling well - welcome back
Love that you back welcome back
Hey, great to see you back man! Thank you for the information 🙏
ive been waiting over a year for you to come back!! hell yess! lets go!
So glad to see you back!
Great to see you back and making content again! Continued prayers for you and Eric's recovery!
Yoo the legend Adam is back. Because of your vids, I started a margin account 4 years ago and started doing the Wheel strategy for monthly income :) Keep thriving my guy
Welcome Back! Good to see you putting up content again, hoping your health continues to improve 🙂
Welcome back brother
Welcome back dude!!
Glad to see you back!
Dude! I got a leap on Walmart earlier this year! Just cashed in on 70% return thanks so much
much love brother
Guys… guys! He’s back!!
2:30 Buy deep ITM, 0.7-0.8 delta, a year and 3 months out
9:45 Monitor liquidity and extrinsic value
I lost money on LEAPS because I got unlucky with the last market crash timing. But I listened to you and didn’t over allocate so it didn’t hurt too much. I’ve also made money on LEAPS over and over. Overall your strategies work for me. You sound great, hope you keep feeling better.
Throughly enjoy your commentary and insight.
My wife and I are so happy to see you back! We've been checking in on how you and your brother are doing since it all started
I clicked on this cuz I wanted to see me boi doing. Most importantly we don’t lose him. He seems like he going through stuff but he’s hanging in there for us and his family!
Our boy is back! Hell yeah!!!
Great review brother! Stay healthy 🙏
This was great. Thank you so much. Is there anyway you could go into detail about the 3 alternatives you mentioned when the expiration date of your leaps starts to draw near? Specifically the costs, etc. associated with rolling over you position? As well as the option of "refreshing leverage by selling and buying a new LEAP option with a lower Delta." We could really do with a detailed video analyzing the mechanics of these alternatives, preferably with examples! Pretty pleassseee????😭😭😭😭
So glad that you're back.
Glad you're back.
This video makes me so happy and it has nothing to do with Leaps!! Welcome Back!!! Looking fabulous!!
I was really excited when I saw that you had a new video come out. It's great to see you again and I hope you are happy and healthy. ❤
I'm so glad to see you back! 🎉
Good to see you making videos again bro
Welcome back, happy to see you healthy.
So happy you are back and feeling better. Thanks for the great videos.
Let’s go baby!!! Happy to have you back
Looking good man . So glad to see you back . 🐐
Hey! Glad to see you're back Adam! Hope you're doing better!
Yes!!! Welcome back bro!!!
Welcome back!
Great to see you making videos! Stay healthy and strong, brother!
Great to see you back and healthy again Adam.
One tip for me to avoid paperhanding is not check my portfolio every single day. I set up alerts for some target stock prices on Yahoo finance and % gains on robinhood and only try to make decisions based on these milesones.
Great to have you back Adam!
you back!
Lets goo Glad to see ur good this year
Was on your channelthe other day good to see you upload hope your health is trending upward
Good to see the GOAT back in action!
Adam you look great! So happy to see you looking healthy. Welcome back!🎉🎉🎉
Frankly the two biggest problems I see with traders who lose money is 1) they over-allocate or YOLO everything. 2) they treat LEAPS like short dated options plays. The strategies are nothing alike. Honorable mention to #3 - not respecting the break of the trend or your stop loss
Very informative and helpful! Thank you.
Great breakdown..... Keep up the great work
aaaaaaaaaaand he is BACK!!
You actually made me 300k. I had 27k in my trading account 3 years ago when I started trading options. Your options videos were so clear and informative that they gave me the confidence to start trading the wheel and doing pmccs. I ended up buying leaps in a mid tech company called Nvidia and have rode it up right through the 10 for 1 split. That ride is responsible for the majority of the trade funds I have today, but I may not have seized the opportunity without your content. Thanks, man. Glad to see you back.
That’s awesome man, so glad to hear
This is gold!! Thank you as always man
Great vid, Adam. Good to see you back.
Actually a suggestion: Would love to see a real example of picking a good quality leap in an upcoming video. Like a decent SPY or QQQ leap, what Greeks to look for etc
Missed you, ITM. Dont forget to focus on yourself and your health!!!
Looking and sounding healthy, man. We're all glad you're back. Hopefully, your brother is doing just as good!
He will be soon! Thanks, bro
I held this youtube subscription for 2 years, and I hope you're back for good!! PROFIT!!!!
Edit: I don't even trade options but I like seeing this guy pop up in my feed with regularity.
Great to see you back, Sir!
Adam you're looking amazing pal!
Glad to see you look like you’re doing better!
Yo hold on Adam is back wtf welcome back bro 😂🙌💯
Now with talks of rate cuts on the horizon - one of your videos looking back historically, the market usually runs up until the rate cut actually occurs...then we're looking at a potential dive. Is that still kinda the outlook at this point? Maybe a vid topic revisit?
Good to see you...and that outro still slaps.
Nice to see you back man
As a value investor, LEAPS are terrific. Let’s say a stock is selling at a discount to intrinsic value and the market hasnt recognised the value of the company, then LEAPS is fantastic.
Can you make a video showing your process for how the mechanics of LEAPS work? (I.e. how you pick your stocks and strike prices). Thanks!