LEAPs

Discussion in 'Options' started by ptrjon, Apr 22, 2010.

  1. ptrjon

    ptrjon

    My outlook: I think stocks like BRK.B and PFE are undervalued and see them going to 90+ and 25+ in the next few years.

    I'm thinking about buying 1 or 2 year LEAPs as to not tie up too much cash(by going long) and to take advantage of moves that will be greater than the implied premium.

    Anybody else do this? Anybody have any advice on the topic?
     
  2. Seems a good plan. Is BRK Barnes and Noble? I don't know any of the companies but an improving economy is bound to improve the bottom line for the two companies. I imagine they are lean going forward with fatty gains in revenues.

    I have some LEAPs on AMD. Still a risky bet, but I am ready to bail out if things turn for the worse.
     
  3. Why not buy Pfizer stock (to collect the dividend) and sell an OTM LEAP?
     
  4. why not just sell a pfe leap put?
     
  5. Div_Arb

    Div_Arb

    Hey route it through the Philly and hedge it on the Cinci