LEAPS strategies

Discussion in 'Options' started by searching, Apr 24, 2004.

  1. searching


    Could anyone provide some ideas on LEAP strategies? It doesn't have to be detailed, just some concepts.
  2. ig0r


    The biggest problem with LEAPs is that trading them is very difficult due to their wide spreads. I know some that use LEAPs to write calls on underlying. For example, you go long 10 LEAP calls, and then each month you write 5 front-month calls to help pay for the LEAP premium, eventually you'll have a free position in the LEAPs.
  3. Maverick74


    Leaps are basically leveraged stock.
  4. ===============

    Keep searching ;
    leaps dont pay dividends
    & you pay
    for decay.

    Searching i do most of my searching with calls in bull market 7 months & less;
    buy & sell plan beats the idea one may ''leap'' over decay.

  5. ===============================
    At first i didnt trust that licenesed broker;
    after years & years of doing business with him, i proved he was helpful to all parties involved in real estate.

    James B. Bittman had a helpful , free article in
    on index LEAPS, where slow decay & bid/ask didnt matter much.

    Stocks Futures & Options magazine is like that multiyear proven broker;
    however still probably wouldnt keep 2 year LEAP s
    2 years.

  6. taigong


    this is a good one, :)
  7. Yannis


    Calendar spreads (can) work very well.
  8. hjcolvin


    I aggree on the Calendar spreads. I am trading of the QQQs and DIA