Stock Options Trading: How to Trade LEAPS and Why They Matter скачать в хорошем качестве

Stock Options Trading: How to Trade LEAPS and Why They Matter

#OptionsTrading #LEAPS #TeslaLeaps #ILMN #LEAPSTrading #OptionStrategies 👋JOIN THE COMMUNITY:   / investanswers   DISCLAIMER: InvestAnswers does not provide financial, investment, tax, or legal advice. None of the content on the InvestAnswers channels is financial, investment, tax, or legal advice and should not be taken as such; the content is intended only for educational and entertainment purposes. InvestAnswers (James) shares some of his trades as learning examples but they are only relevant to his specific portfolio allocation, risk tolerance & financial expertise, may not constitute a comprehensive or complete discussion of such topics, and should not be emulated. The content of this video is solely the opinion(s) of the speaker who is not a licensed financial advisor or registered investment advisor. Trading equities or cryptocurrencies poses considerable risk of loss. Kindly use your judgment and do your own research at all times. You are solely responsible for your own financial, investing, and trading decisions. TIMESTAMPS: 0:00 Introduction 0:30 LEAPS 0:40 Disclaimer and 1.2 Million Views 1:00 LEAPS Advantages Time Stability Leverage Great returns (when you back a winner!) 1:35 LEAPS Defined LEAPS are publicly traded options contracts with expiration dates more 1 year and out, up to 3 years from issue Identical to other options, except with longer times until expiration. Typically traded on stable well traded stocks, ETFs and indexes 2:35 LEAPS Defined 3:00 Short Term Calls vs Leaps Think of rent per month - ie time value. Short-term calls are like renting 5-star hotel rooms at $1000 a night. LEAPS are like buying a house and paying 2.5% mtg interest ie borrow $500K 4:15 LEAP Math My $TSLA LEAP Buy - story of the X! 9,000% return 7:00 Terminology:ATM, ITM, OTM A call option is in the money (ITM) if the market price is above the strike price. A put option is in the money if the market price is below the strike price. An option can also be out of the money (OTM) or at the money (ATM). 8:00 The Greeks Sensitivity of option’s price to changes in the value of underlying security - Delta Rate of time decay of an option - Theta Rate of change of Delta relative to change of price of underlying security - Gamma Option’s sensitivity volatility -ie Vega Vix Sensitive the price of the option is relative to interest rates - Rho 8:24 ILMN Play - bought the $300 LEAPS for $90. BEP $390 Now DELTA is $87 per $ move in price Buy in the money leaps DELTA Secret on Patreon Theta is the loss per day in $ of Time Decay 9:35 LEAPS Rules and What to Watch For 10:00 When to Buy? If you are thinking about buying LEAPS, you may want to do so when implied volatility is relatively low - Vega. Sell when Vega is high Note Rho (an options' sensitivity to a change in interest rates) is no longer important! 10:40 Long Term Outlook Takeaways: Needs to be bullish Find the bottoms Identify the range 11:30 Make a Thesis eg $1T MktCap 11:50 Risk Stock options are always RISKY if you do not know what you are doing. You can structure your investment with LEAPS if you're bullish on a particular stock. A rise of 50% could translate into a 300% gain, but this strategy comes with risks and the odds are stacked against you - you against the machine. Remember the rules I shared! 12:30 Watch Open Interest Need volume to trade. 13:00 Limit Orders Only - Sometimes LEAPS can have big spread between bid and ask. 14:00 Taxes When LEAPs are sold at a profit, the gain is taxable. 15:00 How I Operate 16:00 ILMN Simple Math Remember the Delta is key Time decay is gradual 17:00 Time Decay 18:00 Patreon.com / InvestAnswers see how I trade