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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!
=== RECOMMENDED VIDEOS/RESOURCES ===
What Are LEAPS in Options Trading?:
Call Options 101:
Implied Volatility Explained:
Stock Options Trading 101:
Why Early Exercise/Assignment is Rare:
Options Trading For Beginners (PLAYLIST):
tastytrade Tutorials (PLAYLIST):
Option Pricing EXPLAINED:
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