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Thanks for the video! As of today (June 29th 2022) AAPL price is strangely very close to where it was in the video at 139.23. The option contracts mentioned are at... 135 call @ 19.55 vs video @ 22.85 = -16.87% 70 call @ 71.35 vs video @ 66.45 = 6.85% Results so far are in line with the video. It's interesting to think about all of the things that have happened since this video was made and know that either of these options were better than what my portfolio has done in the same amount of time. Btw...52 week high on the 70 was @ 112 and the 135 was @ 54 So a person could have roughly doubled their money if they sold well. That's on a roughly 40% move up in AAPL. Give this a thumb so others can see it too.
yes, they all say they want to help the community and change their life and most do want to change but it through buying some of these courses which are extremely out of range for someone who is struggling.
I love LEAPs. I have a very nice profit from a 2 year LEAP come the end of this coming week. Profit will be over $15K from this one LEAP! Great way to start 2022!
You are the best! Very clear explanation. I hold stocks and sell LEAPS ATM covered calls and sell LEAPS ATM cash covered puts at abut 2:1 ratio. I can generate about 5% to 10% additional "interest" yearly by buying and selling. I do get stocks called away and/or assigned sometimes. But selling LEAPS options works better for me.
Wow man this is easily the best coverage of this topic. Thank you!!! I have to study this further by watching this again maybe even twice (or thrice) to make sure I understand this thoroughly. You really work hard to help people by educating them and I admire that.
@@JakeBroe Awesome, looking forward to it. While you're at it, do you plan on making videos explaining option strategies available in higher option levels in your brokerage?
Hello Jake, first let me wish you Happy Christmas with lot of happiness, good health, abundant wealth and above all help the society in sharing your knowledge. I was so ignorant of difference between a long call and LEAP - you made it so simple. Thank you so much again. I was buying long calls so far, now should look into LEAPS, at least one or two stocks. I have aapl long call. Which other stock do you generally buy?
Glad you found the video helpful Devi! As for what I buy, you can see all my current positions in this playlist: ru-vid.com/group/PLscTZuOqKWIyTxElpV3mROcA6BhBnYz4c
Amazing training! So, lets say Tesla is tanking and is at 150 share price and $37 million is bought on Tesla 230 Puts that expire on June 21st (2 months away) would that person make a ton of money if tesla continues to tank?
Appreciate the video. I didn’t understand why the strike prices decrease on the in the money contracts. I kept thinking are we betting on the stock price plummeting 😂. But you explained it beautifully, it’s strike price plus premium equals breakeven. Thank you!
I understand that Out of the money call contracts are cheaper than In The Money, but the reason for that is because in the money contract has intrinsic value and can sustain some downward direction. If the stock doesn’t perform as you are hoping. So I’m a little confused why you are buying a leap option that’s out of the money. you’re making it harder for yourself to eventually get in the money. And if that leap option also goes down value because the stock goes down, you are really digging yourself a hole. So hoping you can go over your justifications. I know you’re not actively doingstock education videos anymore, but would love and appreciate your input
Jake, I have been avidly following your different videos on options and big fan of your narration style and thinking power, thank you ! In this video, you are implying that the second scenario, buying a call option “deep in the money” is the most superior scenario right ? The only con vs the first is that it ties in a higher premium (or higher capital to play the same price movement) but to your point, bulk of the premium goes towards building intrinsic value …that’s what I gathered you saying.
Great video, Jake. What are your thoughts on using LEAPS versus other forms of leverage such as margin? I would love a video comparing the various options for leverage.
You are for sure might go to when I want to get comfortable the way that I think about these concepts I have a learning disability when it comes to math although they weren’t calling that when I went to school. As you can imagine trying to conceptualize options is not easy for me. so thank you for your explanations and the way that you do so.
Just bought my first leap base on your video. I've been doing good with cash secure put but like to try a leap for the experience. I bought AAPL one year out, we will see, finger cross.
I bought AAPL with 135 strike for Jan 2023 few weeks back, so can I say it is LEAP? So I should start learning Poor-man’s covered calls. Thank you Jack, I am becoming more and more confident in trying the options with your videos.
lol it is 07/01/2024 and Apple is now at $216.75. This was achieved 3 years after this video was made!! A-m-a-z-i -n-g! I’m buying Leaps in Apple and Palantir.
If you are really bullish on a stock do you recommend a ITM with a higher delta to mimic the movement of the stock. Or do you recommend a OTM with a 65 to 75 delta? Also, can delta move throughout the contract?
6:36 brought up a question for me. When you have a (deep) in the money (call) option, would the following be true. Suppose we own the option in the video and during those 690 days the price of the underlying stock does not change. Then the intrinsic value should remain the same right? But does that mean that theta decay only eats away the premium part of the extrinsic value of the option?
Hi Jake, let’s say I don’t have enough buying power to sell call and I do a poor mans covered call. If the current stock price falls below my strike price, I need to sell a 100 shares. But since I don’t have buying power, will my leap get sold?
Hey Mark! For my job in the Air Force I deploy to the missile fields for a week at a time every 3rd week. So I sometimes film a video a week or two in advance to schedule its release so I can keep posting content when I am deployed.
I been watching your videos, you explain everything well and I understand it. I want to start doing call and put options but when I look at the options/choices, I panic. Oh I just got approved for level 1 on Schwab 😂🤣
great video. can you pls share your experience from the latest set of shares and if you are taking any new LEAPS positions on ARM or NVDA. Thanks for sharing.
Enjoyed it, thanks. If only I could buy Long-TEAS in my IRA accounts, that would be cool. Alas, I'll probably just stick to buying 2-6 month calls / puts in my brokerage account and buying stocks in my IRA.
If Apple goes to 200 by the time of expiration. How much money would you make compared to leap contract and owning 100 shares? Edit: nevermind I figured it out, the profit should be the same as owning 100 shares however you paid less to get in. So leaps offer a leveraged profit.
Great explanation Jake. Thanks. I’ve been wondering how your portfolio has been performing recently since you giving up your investing videos in favour of those on the invasion of Ukraine. Hope it’s recovering🙂
What about taking into account the tax implications of the call expiring at the end of the two years causing a long-term capital gains tax, versus having stocks in definitely carrying over the capital gains tax perpetually or til you encase in retirement etc,?
Yeah a family member lost everything using leaps. It’s because they didn’t understand what they were doing and listened to someone who took everything!
@smartdogschoolrandybyrd1704 put 100% of your net worth into some 200$ strike 1 year out on some degen stock like bed bath and beyond and soon enough you'll be in bed reading what chapter 13 is about
