I did bad maths at 7:52, the bid ask is actually lower around 1.5% of the value of the option. It also shows the mark price so I didn't need to do the math to find the mid. They are synonymous.
Can’t describe how personally invested I am in seeing you win Brodie. I get legit geeked just to see you post. You can legit get a like posting finger football. You pushing through to deliver free value instead.
Every few years I start to go through ITM's older videos to refresh myself before I decide if I want to hop back into the stock market. Im so glad to see that almost.. 6? years later this guy is still guiding people towards success.
I’m happy to see you. Please give yourself more grace in the calculations with all you’ve been through😅Something about the way you trade resonate with me but I’m still a newbie and trying my best to understand the approach. Thank you for all that you do.
Wow !! I am super happy to see you again. And i'm more exciting to know you back doing what you know how to do best! I pray and wish you continue to be in good health .
Listening to this commentary brought a tear to my eye, BT. You’re 101% correct about everything. I play total solo like you and have a similar skill level/historial skill level of being well above average. No means MLG, but pretty good at most of these games if I try. Also a lot better in the last when I had more time. Now, I have a family, kids etc. so I want to just chill but the past account stats coupled with the matchmaking in these recent cod games just destroys any semblance of fun. I can’t play longer than 45 minutes and I’ve only joined a few games that aren’t already in progress. Every match is also against 4-6 person squads most of the time they’re calling out, holding lines and spamming low streaks to dominate. It’s exhausting. This game just ain’t it.
When it gets time to dump these options, for exercising, does RH require that you have the capital needed to purchase the 100 shares or do they "lend" you the money until you can resell the shares to make up the difference? I think I've seen peoples' accounts show a negative number before? That's my only hold up with getting into LEAPS being how best to exit them before they go to 0.
You are sounding great Adam! We all knew would be victorious...after all, you are InTheMoneyAdam! You may not be completely through your health issues, but you look much, much better!
I have been following you for years and I remember you taught me options trading on Robinhood about 4 years ago. Since then i have been trading options and averaging about 10k a year in profit. I owe it all to you. Thank you.
finally . . . . . the value xchecked of a leap strike's Tv+Iv as component of the contract value makes sense. always curious about how you were picking your purchase places across delta & strikes making the proper comparative analysis. (you seem the mindset for this discipline). sorry; not a patreon type mindset but deffi not a 'get smthn' for nothing' type of mindset either, so very much appreciative of this effort of goodwill to this portion of your audience (dedicated BTW). thanks for this post Adam.
Thanks for the video! I'm new to leaps and there's so much that I don't understand here. Why buy calls below the current stock price? Is that something you would only do with a bearish outlook or bullish as well - but how would they be profitable if the price continues to rise? I will definitely have to watch it a few time to understand the strategy.
Is it fair to say that Leaps with ~80% Delta are better for selling at 3-months till expiration (due to theta decay) whereas Leaps with >95% (typically at 50% strike price with lower breakeven) Delta are better for execution(assuming you love the stock)?
Do you still only hold 3 stocks? i remember you made a video years ago and you said you don’t believe in diversification and only owned microsoft amd and chegg or something like that
Nope, leave my upside uncapped. I want that leverage without risking getting deep underwater with a short call. Buy the dip as necessary, usually towards the end of the option’s life span.
It’s so good to see you back my man! I have 100 AMD shares that I bought at around 170. I’ll probably sell part of the shares and buy a leap with the money if it keeps going down tomorrow. Question: isn’t a delta of 75-90 not too high? Wish you much strength with your fight and hope you’ll be soon healthy again!
Bought two 75 delta WMT calls with 180 dte a month ago, took $280 profit on one of them. Did the same with silver the other day, but I feel like it's gonna eat some near term drawdown. I do like that all risks are defined upfront with options
Hope you are doing fine… Are you planning to make a video about selling deep ITM cash secured put and selling deep ITM cover calls? It must be interesting because of the way you teach things. Thanks
Excellent information!! I will have to join your Patreon. You are the only one that looked at IV for a LEAP and I think that is so important as you want the lowest IV when buying a LEAP (not selling). One question, have you been able to do LEAPs in the Roth IRA then CC on those LEAPs? I can do the LEAPs, but then the CC is not allowed for some reason in my Roth IRA Robinhood account.
@@InTheMoneyAdam Good point. I am usually way OTM on my CC. I've switched to standard wheel strategy in my Roth IRA after noticing that I can't do the PMCC.
Thanks for this. Would like to learn more about the comment you made around 530s on why you don’t care about implied volatility when picking the option, is it because you already decided on the stock, and implied volatility of different options within the same stock doesn’t say much? Can you pls clarify
Because you can’t map out IV of individual options to see if it’s low or high, and because the IV is similar across the options chain, I care about the historical IV which is more of an average and I can see if it’s low or high historically.
Hi Adam, good to see you making videos again. But I am confused as to why you did what you did. You sold ~$6K of AMD to then use those $ to fund the purchase of a LEAPS call option. So you are short x shares of AMD but long 100 shares (at a certain delta - I forgot what the value was) via the LEAPS call option. What is your strategy to handle this combo position?
I’m not short stock, I sold stock I owned. I said this in the first comment you silly goose. I’m taking some money out of AMD and leveraging it back in.
Hope you’re doing well and that your recovery is improving! May I ask why buy LEAPS right now when in prior videos you are addressing a high possibility of a recession?
In my Patreon I made a voice memo addressing this, but the probablities have shifted. The last Fed interest rate decision, summary of economic projections, and press conference painted a rosier picture than I anticipated. So I’m back to my usual. And if a recession does come, so be it. Buy the dip.
Leaps when market is at ath, questionable timing lol. Hopefully turns soon. Last time I got fomo like this I bought in thinking the current admin would keep inflating for us… month later crash. Have that same feeling… we’ll see
how would exercising a LEAP option be tax efficient? wouldn't that force you into short term capital gains? but if you sold the LEAP option after a year you'd have long term capital gains
@ 18:32 you said "to avoid taxes on your gains". It was very confusing because it's not avoiding taxes at all and in fact is increasing them if you've held the LEAP for over a year... but yes it is more cost efficient (if you don't consider taxes) if there is no liquidity
Another great video, thank you. Question: Actually, looking for confirmation that it is (or is not you) that I am conversing with on Discord regarding mirror trading. If it is you, excellent, if it's not then you'll be saving me from a scam.
With $7,000 limit per year on Roth IRA, how did you get to $280k at this age? Unless you have $200k worth of profit, in that case I need to join the group.
Yes. I’ve seen this on prior videos and my eyes almost popped out of my head. I was slow to IRA and index funds but 4x-ing my IRA at 39 years old is just bonkers.
Last year was insane, 40-60% returns across the board (methinks from inflation and USD being devalued). Doubt next year will look that good, unless something is really wrong. But that's why you DCA and ride it for the long haul
@@InTheMoneyAdamWhen do you sell them? Who do you sell them to? When do you “let them die” and how do you do that? I’m so confused by it I’m sure I have questions I don’t even know what to ask? I followed your video to buy LEAPs like two years ago and ended up with hundreds of shares of different stock and $150k leveraged because the time ran out and I had no idea what happened.
@@FatherDragonKal I tend to not sell them. I buy them on companies I'd hold long-term and roll them up and out when they're profitable and becoming illiquid/approaching expiration, or I sell and buy a new LEAP using the proceeds and extra cash to buy the dip. You sell them to either other market participants or market makers. If you can't afford to buy the dip, you have to just let the LEAP ride because they are so leveraged that you would quickly get stopped out if you had one. Not sure what you mean by 150k leveraged and time ran out. Did you let them expire? Anyway, that's all I'm answering here to keep it fair to my Patreon supporters who pay to ask questions.
I did bad maths at 7:52, the bid ask is actually lower around 1.5% of the value of the option. It also shows the mark price so I didn't need to do the math to find the mid. They are synonymous.
glad to see you are getting better!
Thank you!
Am I dumb? I am glad that you know it. 🤣🤣🤣
@@elbarca223
At least he’s that smart not to go to your level and respond to you.
Adam is strong!!! We love you man
It's great to see you are getting better!! Hope the best also for your bro.❤
Can’t describe how personally invested I am in seeing you win Brodie. I get legit geeked just to see you post. You can legit get a like posting finger football.
You pushing through to deliver free value instead.
Appreciate you
Good to see you brother! Hope you're doing well!
Every few years I start to go through ITM's older videos to refresh myself before I decide if I want to hop back into the stock market. Im so glad to see that almost.. 6? years later this guy is still guiding people towards success.
You seem to be doing a lot better compared to a few months ago. I’m incredibly happy for you and hope you are doing well
100% agreed about swing trading. Wheel just makes sense, get assign then just sell calls at assigned strike. Simple.
Thank you Adam! Awesome video, you covered a lot of nuances which aren't generally covered. Loved it, glad to see you better man
Dude!!!! I will watch this tomorrow morning. I just wanted to give you a like right away!!!
It seems you’re doing much better Adam. I’m happy to see it. Insightful content too about bargaining for a mid and your delta sweet spot.
I’m glad seeing you look healthier… hope life been treating you better.
I’m happy to see you. Please give yourself more grace in the calculations with all you’ve been through😅Something about the way you trade resonate with me but I’m still a newbie and trying my best to understand the approach. Thank you for all that you do.
Wow !! I am super happy to see you again. And i'm more exciting to know you back doing what you know how to do best! I pray and wish you continue to be in good health .
Thank you!
I'm so happy tp see a new video and hopefully this comes across as well as intended: you look and SOUND much better than in a long time!!!! 🙏
So glad you back and doing better 🙌
Learning so much through your videos. Definitely hopping in the Patreon once I’ve saved a chunk to mess with
Giving you likes on your videos because of your fight against incredible obstacles. Let's go, Adam!
I am so glad to see you Adam. Recently I am interested in leap and here you are. Thank you.
Glad to have you back goat
It's So Good to See You! ❤ Thank You
I love LEAPs in a special and unique way!
Welcome back bro
Oooh SHIT It's that BOYEEE
Thank you master of Options for this morsel of knowledge
Listening to this commentary brought a tear to my eye, BT. You’re 101% correct about everything. I play total solo like you and have a similar skill level/historial skill level of being well above average. No means MLG, but pretty good at most of these games if I try. Also a lot better in the last when I had more time. Now, I have a family, kids etc. so I want to just chill but the past account stats coupled with the matchmaking in these recent cod games just destroys any semblance of fun. I can’t play longer than 45 minutes and I’ve only joined a few games that aren’t already in progress. Every match is also against 4-6 person squads most of the time they’re calling out, holding lines and spamming low streaks to dominate. It’s exhausting. This game just ain’t it.
Looking good thanks for all the content good to see your doing better
Welcome back my boy
Just wanted to say your content helped inspire me to start my own channel! Just sat down and created my first ever video today!!
Nice!
When it gets time to dump these options, for exercising, does RH require that you have the capital needed to purchase the 100 shares or do they "lend" you the money until you can resell the shares to make up the difference? I think I've seen peoples' accounts show a negative number before? That's my only hold up with getting into LEAPS being how best to exit them before they go to 0.
You are sounding great Adam! We all knew would be victorious...after all, you are InTheMoneyAdam!
You may not be completely through your health issues, but you look much, much better!
I have been following you for years and I remember you taught me options trading on Robinhood about 4 years ago. Since then i have been trading options and averaging about 10k a year in profit. I owe it all to you. Thank you.
finally . . . . . the value xchecked of a leap strike's Tv+Iv as component of the contract value makes sense. always curious about how you were picking your purchase places across delta & strikes making the proper comparative analysis. (you seem the mindset for this discipline). sorry; not a patreon type mindset but deffi not a 'get smthn' for nothing' type of mindset either, so very much appreciative of this effort of goodwill to this portion of your audience (dedicated BTW). thanks for this post Adam.
Poor man’s covered call Adam
Great videos
Stay up
Thanks for sharing. Love your content!
Thanks!
With the leaps you just bought you can sell calls against it? (PMCC)
Yes you can! Be careful about your short called getting assigned though!
Thanks for the video! I'm new to leaps and there's so much that I don't understand here. Why buy calls below the current stock price? Is that something you would only do with a bearish outlook or bullish as well - but how would they be profitable if the price continues to rise? I will definitely have to watch it a few time to understand the strategy.
Is it fair to say that Leaps with ~80% Delta are better for selling at 3-months till expiration (due to theta decay) whereas Leaps with >95% (typically at 50% strike price with lower breakeven) Delta are better for execution(assuming you love the stock)?
Will you do an update whether you think a recession will happen or not?
Thank you so much for a great Videos Adam!
Do you still only hold 3 stocks? i remember you made a video years ago and you said you don’t believe in diversification and only owned microsoft amd and chegg or something like that
Do you ever use PMCC's on your LEAPS for some extra gains?
Nope, leave my upside uncapped. I want that leverage without risking getting deep underwater with a short call. Buy the dip as necessary, usually towards the end of the option’s life span.
Missed you man. I didn't sub before. I subbed now.
Keep on punching
It’s so good to see you back my man!
I have 100 AMD shares that I bought at around 170. I’ll probably sell part of the shares and buy a leap with the money if it keeps going down tomorrow. Question: isn’t a delta of 75-90 not too high?
Wish you much strength with your fight and hope you’ll be soon healthy again!
I just noticed that the limit textbox has the "mark" right there conveniently.
Noticed that, too. Put it in the pinned comment. Nice!
@@InTheMoneyAdam I'm loving the new Robinhood Legend. It has so many "hidden" features!! Haha
Thanks, Adam! How are you liking the legends platform?
I like it! Needs work. I rattle off some things it needs at the end of this video.
@@InTheMoneyAdamAnd there’s no roll shortcut like there is in the regular version…
Bought two 75 delta WMT calls with 180 dte a month ago, took $280 profit on one of them.
Did the same with silver the other day, but I feel like it's gonna eat some near term drawdown.
I do like that all risks are defined upfront with options
Adam would you ever buy a LEAP on an index etf like SPY or QQQ?
Already own one on QQQ
Hahaha I’m an idiot I just saw that - it’s very small on mobile
Hope you are doing fine…
Are you planning to make a video about selling deep ITM cash secured put and selling deep ITM cover calls? It must be interesting because of the way you teach things. Thanks
That will be great! i would like to watch and learn it too Adam!
Do you short like monthly calls to lower the cost of the leap?
The best dude of the game is HERE
ITM… long time viewer for years. Great content man.
Btw. Any interest in Leap for PayPal?
Excellent information!! I will have to join your Patreon. You are the only one that looked at IV for a LEAP and I think that is so important as you want the lowest IV when buying a LEAP (not selling). One question, have you been able to do LEAPs in the Roth IRA then CC on those LEAPs? I can do the LEAPs, but then the CC is not allowed for some reason in my Roth IRA Robinhood account.
Haven’t tried, don’t like capping my upside potential
@@InTheMoneyAdam Good point. I am usually way OTM on my CC. I've switched to standard wheel strategy in my Roth IRA after noticing that I can't do the PMCC.
Yeah, I’ve noticed that my typical 0.3 delta cc’s (when I do sell them) usually end up ITM rather quickly.
Don't cc them. Just buy the leap and don't over think it
@lslurpeek been doing PMCCs for a very long time. Can't stop. Like it too much.
You are a god send! I recently started trading seriously and this definitely helps. I hecking love LEAPS.
What broker does u use & we can trade option in our Roth account . Thx
He uses Robinhood
Thanks for this. Would like to learn more about the comment you made around 530s on why you don’t care about implied volatility when picking the option, is it because you already decided on the stock, and implied volatility of different options within the same stock doesn’t say much? Can you pls clarify
Because you can’t map out IV of individual options to see if it’s low or high, and because the IV is similar across the options chain, I care about the historical IV which is more of an average and I can see if it’s low or high historically.
@ I see, when you look at historical, do you look at 100 days, 255 days, or a different time?
Can you do a video backtesting buy and hold vs the wheel?
is there a way to have a volatility indicator on robinhood legend? I feel that is what missing and keeping me in trading view..
Nope. Is there one on TV? I can’t find it
@ on TV, I use the volatility suite which helps with implied volatility. I recall seeing a historical volatility indicator too
I was just thinking about you today. I hope you and your brother are well.
Would it be best to do PMCC against the leap
Hi Adam, good to see you making videos again. But I am confused as to why you did what you did. You sold ~$6K of AMD to then use those $ to fund the purchase of a LEAPS call option. So you are short x shares of AMD but long 100 shares (at a certain delta - I forgot what the value was) via the LEAPS call option. What is your strategy to handle this combo position?
I’m not short. I sold shares and bought a leveraged position with the proceeds. I just swapped shares for a LEAP, leveraging the dip.
I’m confused too. If you’re long an 80 ish delta call & short stock at the current price. Wouldn’t you be net short your position?
I’m not short stock, I sold stock I owned. I said this in the first comment you silly goose. I’m taking some money out of AMD and leveraging it back in.
Do you plan on closing your leaps early if the signs for recession in the next year are imminent? Kinda like playing it by ear.
So, is a LEAPS simply an option with a long expiration date?
Yes, >1 year typically
Hope you’re doing well and that your recovery is improving! May I ask why buy LEAPS right now when in prior videos you are addressing a high possibility of a recession?
In my Patreon I made a voice memo addressing this, but the probablities have shifted. The last Fed interest rate decision, summary of economic projections, and press conference painted a rosier picture than I anticipated. So I’m back to my usual. And if a recession does come, so be it. Buy the dip.
Can I get 3x leverage buying ITM LEAPS?
Good to see you back out here brother . Hope all is well on that end 🙏🏽🫡
Was Legends only rolled out to select people so far?
I suppose so
Legend is back with golden boi look. Glad the boys are back …
Leaps when market is at ath, questionable timing lol. Hopefully turns soon. Last time I got fomo like this I bought in thinking the current admin would keep inflating for us… month later crash. Have that same feeling… we’ll see
Now cover MSTR. Good to have you back brother.
Looking good Adam
how would exercising a LEAP option be tax efficient? wouldn't that force you into short term capital gains? but if you sold the LEAP option after a year you'd have long term capital gains
Did I say tax efficient or cost efficient? If you have like no liquidity at all, you don’t have much of a choice. But this is a rare outcome.
@ 18:32 you said "to avoid taxes on your gains". It was very confusing because it's not avoiding taxes at all and in fact is increasing them if you've held the LEAP for over a year... but yes it is more cost efficient (if you don't consider taxes) if there is no liquidity
Ah yeah, not sure why I said that. Makes no sense.
What was your break even?
I believe it was about 14% to the upside, sorry, forgot to cover that.
Around 6:00 when you thought you were looking at delta you were actually looking at Vega 😱
Yeah did a brief whoopsies
Another great video, thank you. Question: Actually, looking for confirmation that it is (or is not you) that I am conversing with on Discord regarding mirror trading. If it is you, excellent, if it's not then you'll be saving me from a scam.
Not me
@@InTheMoneyAdam good to know. Thank you.
are you not trading on tasty trade any more?
Haven’t been in years
With $7,000 limit per year on Roth IRA, how did you get to $280k at this age? Unless you have $200k worth of profit, in that case I need to join the group.
Yes. I’ve seen this on prior videos and my eyes almost popped out of my head. I was slow to IRA and index funds but 4x-ing my IRA at 39 years old is just bonkers.
Just consistent deposits and good returns. I’ve made most of my Roth money in the last few years.
Last year was insane, 40-60% returns across the board (methinks from inflation and USD being devalued). Doubt next year will look that good, unless something is really wrong.
But that's why you DCA and ride it for the long haul
I'm so confused now.. aren't you Climb That Ladder on X?
Nope
hello again! :)
If you are not subscribed to in the money , are you really learning?
Market is so choppy rn. All my stop losses are hitting. Thank gosh I didn’t swing NVDA
It doesn't seem right to sell shares of a sunken stock to pay for your leap.
It’s essentially buying the dip
AMD at 120 $😥
thanks Adam I'll stick with TOS
Definitely a more robust platform
Haven’t watched the video, but I hope it includes how to SELL LEAPs please 🙏
What part of selling LEAPS are you confused on?
@@InTheMoneyAdamWhen do you sell them? Who do you sell them to? When do you “let them die” and how do you do that? I’m so confused by it I’m sure I have questions I don’t even know what to ask? I followed your video to buy LEAPs like two years ago and ended up with hundreds of shares of different stock and $150k leveraged because the time ran out and I had no idea what happened.
@@FatherDragonKal I tend to not sell them. I buy them on companies I'd hold long-term and roll them up and out when they're profitable and becoming illiquid/approaching expiration, or I sell and buy a new LEAP using the proceeds and extra cash to buy the dip. You sell them to either other market participants or market makers. If you can't afford to buy the dip, you have to just let the LEAP ride because they are so leveraged that you would quickly get stopped out if you had one. Not sure what you mean by 150k leveraged and time ran out. Did you let them expire?
Anyway, that's all I'm answering here to keep it fair to my Patreon supporters who pay to ask questions.
@@FatherDragonKal why would you sell leaps, theta doesnt ramp up until 60DTE, there is no point to sell LEAPS
Good stuff
-32% ☹️
i love your advice but swing trading pays.. you'll get the hang of it for sure.
leaps of faith
Thank u
thanks
Ah crap i was gonna join patreon and it doubled in price f me !
Does robinhood pay you for these videos?
Nope, I listed a bunch of stuff that’s wrong with their platform near the end
Aye! Let's
❤
What are your thoughts on these high dividend ETF’s like BITO and others