Leaps

Discussion in 'Options' started by Digs, Jan 12, 2010.

  1. Digs

    Digs

    Say I think a stock is going up over the next 6 months..

    I buy a leap...for that stock

    This limits the amount of capital required to take the position compared to buy the shares...

    Please pass comment, on your experiences of Leaps
     
  2. You are correct.
     
  3. buy deep in the money leaps. I have bought out-of-the-money leaps and see the time erode the value unless of course its a growth stock and you are expected some good movement in your direction, but again if you are looking out for six months sells a call with higher strike price. to offset some of the time decay and just in case IV should go down.