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

--------------------------------------------------

You should not treat any opinion expressed on this YouTube channel as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Opinions expressed are based upon information considered reliable, but this YouTube channel does not warrant its completeness or accuracy, and it should not be relied upon as such. This YouTube channel is not under any obligation to update or correct any information provided in these videos or their descriptions. Statements and opinions are subject to change without notice.

Past performance is not indicative of future results. This YouTube channel does not guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on this YouTube channel. Strategies or investments discussed may fluctuate in price or value. Investors may get back less than invested or lose more than their original investment. Investments or strategies mentioned on this YouTube channel may not be suitable for you. This material does not consider your particular investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. You must make an independent decision regarding investments or strategies mentioned on this YouTube channel. Before acting on information on this YouTube channel, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment advisor.

[jaygrote]

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.

[TrestanSKYWALKR]

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.

[Julian-mlgo]

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%.

[krellin]

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

[ViralMediaSou]

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.

[thiggs]

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.

[fightercomback]

The legend returns, welcome back InTheMoney!

[mothanwrdz]

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

[InTheMoneyAdam]

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

[FVCK-]

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.

[MagicalMongoose]

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

[frasenal]

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.

[roodee]

I saw your original leaps video, and FINALLY have enough to deploy a responsible 12/17/27 500C SPY Leap! It's Donald Fool's Day +1, there's blood on the streets, and I'm hoping in 988 days I can report back with some good news! Good luck out there everyone! (PS glad to see you and your brother feeling better lately)

[knowledgeispower]

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

[moosejaw]

You turned me on to LEAPs a few years ago. Make over 200k trading leaps. About 30% of my portfolio is leaps now. Thank you!

[aboyd]

9:18 "Don't panic-sell like a sissy."😂

[chucktx]

Thanks! You are still the best instructor.

[CarlPetty-yx]

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

[shiftym]

Glad to see you healthy enough to make videos again!

[kayok]

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