This Guy Made $120K Trading LEAPS | What He Did Right

Поделиться
HTML-код
  • Опубликовано: 21 дек 2024

Комментарии • 448

  • @jaygrote3557
    @jaygrote3557 5 месяцев назад +330

    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.

    • @melzdesign
      @melzdesign 5 месяцев назад +1

      Oversold big companies or etf

    • @dougb8207
      @dougb8207 5 месяцев назад +14

      Wow; thanks for the effort you put into writing this out.

    • @774471jr
      @774471jr 5 месяцев назад +18

      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.

    • @jaygrote3557
      @jaygrote3557 5 месяцев назад

      @@774471jr Thanks for the notes on the notes! Here's some notes on the notes on the notes.
      1. Buy low, sell high. Repeat.

    • @intelligentcomputing
      @intelligentcomputing 5 месяцев назад +4

      greatly appreciate the extra effort, man! 👋

  • @TrestanSKYWALKR
    @TrestanSKYWALKR 5 месяцев назад +100

    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.

    • @ccstarz19
      @ccstarz19 4 месяца назад +2

      Love to see things like this

    • @deeptoot1453
      @deeptoot1453 Месяц назад +2

      Same here. Sittign o 120k unrealzid gains. I did over allocate haha.

  • @Julian-ml7go
    @Julian-ml7go 5 месяцев назад +129

    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%.

  • @anonymous-dk3um
    @anonymous-dk3um 5 месяцев назад +144

    Were so fucking back

  • @Ronsou
    @Ronsou 5 месяцев назад +37

    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.

    • @svrenema6752
      @svrenema6752 4 месяца назад +1

      Just discovered this channel! What videos by ITM do you recommend on LEAPs and in general? I’m about a month into this world.

    • @EnoI539
      @EnoI539 4 дня назад +1

      @@svrenema6752I’ll say do leaps if you can afford it.

  • @fightercomback
    @fightercomback 5 месяцев назад +84

    The legend returns, welcome back InTheMoney!

  • @mothanwrdz
    @mothanwrdz 5 месяцев назад +13

    …and STILL the best RUclipsr out there on sage, level-headed advice on trading options. Glad to have you back.

  • @krellin
    @krellin 5 месяцев назад +31

    fucking good to have you back
    at least one person talking finance on this platform is not a complete clown

  • @InTheMoneyAdam
    @InTheMoneyAdam  5 месяцев назад +48

    If you have your own tips for trading LEAPS, let me know in the comments!

    • @jonathanlangford4291
      @jonathanlangford4291 5 месяцев назад +3

      Deep in the money with at least 2x leverage. 18 months. Reasonable break-even point.

    • @ryanhopper8122
      @ryanhopper8122 5 месяцев назад

      Would like your opinion on my apple leaps

    • @dannygunn140
      @dannygunn140 5 месяцев назад

      @@jonathanlangford4291 What delta meets that 2x leverage? Or it it more about the contract premium versus stock price for you?

    • @elliott8596
      @elliott8596 5 месяцев назад +6

      Buy low, sell high. Never fails me.

    • @donkndave7811
      @donkndave7811 5 месяцев назад +3

      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!

  • @stoiclester1363
    @stoiclester1363 5 месяцев назад +27

    Good to have you back brother!

  • @MagicalMongoose
    @MagicalMongoose 5 месяцев назад +11

    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

  • @FVCK-
    @FVCK- 5 месяцев назад +12

    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.

    • @InTheMoneyAdam
      @InTheMoneyAdam  5 месяцев назад +5

      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.

    • @robwells230
      @robwells230 3 месяца назад

      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

  • @chucktx5957
    @chucktx5957 5 месяцев назад +1

    Thanks! You are still the best instructor.

  • @frasenal
    @frasenal 5 месяцев назад +28

    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.

  • @shiningyrlife
    @shiningyrlife 5 месяцев назад +14

    the GOAT is back!

  • @CarlPetty-y5x
    @CarlPetty-y5x 5 месяцев назад +5

    GREAT to see you again! Prayers you're continuing to improve - and your brother. 👊

  • @kayok07
    @kayok07 5 месяцев назад +2

    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

  • @donkndave7811
    @donkndave7811 5 месяцев назад +8

    SO GLAD to see you back!

  • @knowledgeispower36
    @knowledgeispower36 5 месяцев назад +8

    I was just thinking about you the other day bro - glad you’re back

  • @7779-c3m
    @7779-c3m 5 месяцев назад +2

    Great to Have you Back

  • @stevemucha2149
    @stevemucha2149 5 месяцев назад +2

    It’s very nice to hear you speaking so well!
    Congratulations on getting better!

  • @yvonnek3968
    @yvonnek3968 5 месяцев назад +1

    Welcome back! You were very much missed. So glad to see you are feeling much better!

  • @audiophile1838
    @audiophile1838 5 месяцев назад +3

    Welcome back Adam! Hope you get better each day!

  • @leoworrall9449
    @leoworrall9449 5 месяцев назад +5

    Good to see you back, I hope your health is improving. It looks like it is, much more coherent in this video.

  • @deeptoot1453
    @deeptoot1453 Месяц назад +2

    Glad to see your back bro

  • @servando
    @servando 5 месяцев назад +1

    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 ;)

  • @robdoesweather6758
    @robdoesweather6758 5 месяцев назад +3

    So excited for my favorite financial learning channel to be back!

  • @shiftym1
    @shiftym1 5 месяцев назад +2

    Glad to see you healthy enough to make videos again!

  • @Theolusagroup
    @Theolusagroup 8 дней назад

    The man and the myth. Welcome back🎉

  • @P2wpio9143
    @P2wpio9143 5 месяцев назад +1

    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!

  • @TheJessehart05
    @TheJessehart05 5 месяцев назад +3

    I get so excited when you post videos! Welcome back

  • @kkwin1595
    @kkwin1595 5 месяцев назад +2

    So glad to have you back here Adam!

  • @kentwheeler2079
    @kentwheeler2079 5 месяцев назад +2

    Happy to see you looking and sounding good😊

  • @paulm6755
    @paulm6755 5 месяцев назад +8

    Glad to see you back ...

  • @shawn-le8bv
    @shawn-le8bv 5 месяцев назад +4

    welcome back bro

  • @Sylaerix
    @Sylaerix 5 месяцев назад +1

    It's so good to see you back in action, dude. ❤

  • @Hydralisk777
    @Hydralisk777 5 месяцев назад

    Nice to have you back with us! glad you feel better! great advice as always!

  • @Epicdudebro
    @Epicdudebro 5 месяцев назад +2

    Welcome back brother ❤❤❤ you’ve been dearly missed

  • @DavidRosecomedy
    @DavidRosecomedy 5 месяцев назад +3

    Missed you, mate. Welcome back!

  • @VanillaCoke
    @VanillaCoke 5 месяцев назад

    great to have you back! cant wait for more vids. hope all is well with you and your brother

  • @boysattosconova
    @boysattosconova 5 месяцев назад +2

    hope you are feeling well - welcome back

  • @ryanhopper8122
    @ryanhopper8122 5 месяцев назад +1

    Love that you back welcome back

  • @roxu5179
    @roxu5179 5 месяцев назад +1

    Hey, great to see you back man! Thank you for the information 🙏

  • @frankg323
    @frankg323 5 месяцев назад

    ive been waiting over a year for you to come back!! hell yess! lets go!

  • @bradcondon7896
    @bradcondon7896 5 месяцев назад +1

    So glad to see you back!

  • @chip_maker5859
    @chip_maker5859 5 месяцев назад

    Great to see you back and making content again! Continued prayers for you and Eric's recovery!

  • @pritulkhan1395
    @pritulkhan1395 5 месяцев назад +4

    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

  • @peternewsome3736
    @peternewsome3736 5 месяцев назад

    Welcome Back! Good to see you putting up content again, hoping your health continues to improve 🙂

  • @brewdog8568
    @brewdog8568 5 месяцев назад +2

    Welcome back brother

  • @shuvo8146
    @shuvo8146 5 месяцев назад +1

    Welcome back dude!!

  • @bk3461
    @bk3461 5 месяцев назад +1

    Glad to see you back!

  • @legna3648
    @legna3648 5 месяцев назад +2

    Dude! I got a leap on Walmart earlier this year! Just cashed in on 70% return thanks so much

  • @davidburton7647
    @davidburton7647 18 дней назад

    much love brother

  • @christopherknox1124
    @christopherknox1124 5 месяцев назад +3

    Guys… guys! He’s back!!

  • @alphabeta8403
    @alphabeta8403 5 месяцев назад

    2:30 Buy deep ITM, 0.7-0.8 delta, a year and 3 months out
    9:45 Monitor liquidity and extrinsic value

  • @timothynelson4614
    @timothynelson4614 5 месяцев назад +1

    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.

  • @kodywillnauer9422
    @kodywillnauer9422 5 месяцев назад +3

    Throughly enjoy your commentary and insight.

  • @1KevinsFamousChili1
    @1KevinsFamousChili1 5 месяцев назад

    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

  • @lioneljoge6517
    @lioneljoge6517 5 месяцев назад

    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!

  • @rosadod
    @rosadod 5 месяцев назад +1

    Our boy is back! Hell yeah!!!

  • @rod383
    @rod383 25 дней назад

    Great review brother! Stay healthy 🙏

  • @taoshinobi
    @taoshinobi 5 месяцев назад +1

    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????😭😭😭😭

  • @GrippingLipsFishing
    @GrippingLipsFishing 5 месяцев назад +1

    So glad that you're back.

  • @rickshipley7232
    @rickshipley7232 5 месяцев назад +1

    Glad you're back.

  • @tidbits9796
    @tidbits9796 5 месяцев назад

    This video makes me so happy and it has nothing to do with Leaps!! Welcome Back!!! Looking fabulous!!

  • @Lander484
    @Lander484 5 месяцев назад

    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. ❤

  • @misha27418
    @misha27418 5 месяцев назад

    I'm so glad to see you back! 🎉

  • @tristanisip321
    @tristanisip321 3 месяца назад

    Good to see you making videos again bro

  • @MrTimzero
    @MrTimzero 5 месяцев назад

    Welcome back, happy to see you healthy.

  • @RyanGillespie-kt1rj
    @RyanGillespie-kt1rj 5 месяцев назад

    So happy you are back and feeling better. Thanks for the great videos.

  • @ryancoleman5081
    @ryancoleman5081 5 месяцев назад

    Let’s go baby!!! Happy to have you back

  • @TOS98SS
    @TOS98SS 5 месяцев назад

    Looking good man . So glad to see you back . 🐐

  • @Bishop3380
    @Bishop3380 5 месяцев назад +1

    Hey! Glad to see you're back Adam! Hope you're doing better!

  • @jsloany787
    @jsloany787 5 месяцев назад

    Yes!!! Welcome back bro!!!
    Welcome back!

  • @brianborse3555
    @brianborse3555 5 месяцев назад

    Great to see you making videos! Stay healthy and strong, brother!

  • @rafaeldietrich8050
    @rafaeldietrich8050 5 месяцев назад

    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.

  • @ThatGratefulGuy
    @ThatGratefulGuy 5 месяцев назад

    Great to have you back Adam!

  • @happycamper4537
    @happycamper4537 5 месяцев назад +1

    you back!

  • @hadesnightmare2970
    @hadesnightmare2970 5 месяцев назад

    Lets goo Glad to see ur good this year

  • @MNIU_
    @MNIU_ 5 месяцев назад

    Was on your channelthe other day good to see you upload hope your health is trending upward

  • @vmshekar
    @vmshekar 5 месяцев назад

    Good to see the GOAT back in action!

  • @martau4768
    @martau4768 5 месяцев назад

    Adam you look great! So happy to see you looking healthy. Welcome back!🎉🎉🎉

  • @Md-ht3cg
    @Md-ht3cg 5 месяцев назад +1

    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

  • @ciscorodz3203
    @ciscorodz3203 Месяц назад

    Very informative and helpful! Thank you.

  • @cfb7000
    @cfb7000 Месяц назад

    Great breakdown..... Keep up the great work

  • @vishalpmehta
    @vishalpmehta 5 месяцев назад +2

    aaaaaaaaaaand he is BACK!!

  • @thiggs
    @thiggs 5 месяцев назад

    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.

    • @InTheMoneyAdam
      @InTheMoneyAdam  5 месяцев назад +1

      That’s awesome man, so glad to hear

  • @enrique8288
    @enrique8288 5 месяцев назад

    This is gold!! Thank you as always man

  • @garretthayman1177
    @garretthayman1177 5 месяцев назад

    Great vid, Adam. Good to see you back.

    • @garretthayman1177
      @garretthayman1177 5 месяцев назад

      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

  • @jasondpalsutube
    @jasondpalsutube 5 месяцев назад

    Missed you, ITM. Dont forget to focus on yourself and your health!!!

  • @Leb.ertarian
    @Leb.ertarian 5 месяцев назад

    Looking and sounding healthy, man. We're all glad you're back. Hopefully, your brother is doing just as good!

  • @wDawks
    @wDawks 5 месяцев назад

    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.

  • @Rush-zu7qx
    @Rush-zu7qx 5 месяцев назад

    Great to see you back, Sir!

  • @richardbaxter7343
    @richardbaxter7343 5 месяцев назад +1

    Adam you're looking amazing pal!

  • @cybertrk
    @cybertrk 5 месяцев назад

    Glad to see you look like you’re doing better!

  • @JordanGmt
    @JordanGmt 5 месяцев назад

    Yo hold on Adam is back wtf welcome back bro 😂🙌💯

  • @TheTrader311
    @TheTrader311 5 месяцев назад +1

    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.

  • @ianadams827
    @ianadams827 5 месяцев назад

    Nice to see you back man

  • @user-fb5mp4tb7s
    @user-fb5mp4tb7s 5 месяцев назад +1

    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.

  • @heazty
    @heazty 5 месяцев назад +1

    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!