Options traders mostly place trades with 30-60 days to expiration, but we are not limited to short-term trades. We can also place long-term options trades via LEAPS (Long-Term Equity Anticipation Securities).
In this video, I cover:
1) What are LEAPS in options trading?
2) What are the differences between short-term and long-term options.
3) How LEAPS can generate massive percentage gains relative to the stock price return over a period
4) Why implied volatility collapsing is not a huge concern when buying LEAPS call options.
5) Why LEAPS should be avoided on most stocks because of liquidity reasons (low open interest/volume).
I hope this video is helpful and you have a better understanding of how you can incorporate LEAPS in your portfolio, and especially if you have a strong directional prediction for a stock over the next year or so.
Be sure to leave a comment down below with any questions you may have!
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=== RECOMMENDED VIDEOS/RESOURCES ===
If you need a brokerage account and you’d like to trade with tastyworks, get one projectoption course for free when you open and fund your first tastyworks brokerage account with $2,000 or more: https://www.projectoption.com/free-options-trading-course/
Learn More About tastyworks: https://www.projectoption.com/tastyworks/
Call Options 101: https://youtu.be/fUZHmJAvN30
Implied Volatility Explained: https://youtu.be/H-NHZq-skFo
Stock Options Trading 101: https://youtu.be/3bELT5FZCic
Why Early Exercise/Assignment is Rare: https://www.youtube.com/watch?v=7pTb1a5IgKM
Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo
tastyworks Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP
Option Pricing EXPLAINED: https://youtu.be/-nnJ4pMBaxA
Options Trading 101: https://youtu.be/3bELT5FZCic
