Jul 17, 20211 min
Hey Advanced Traders!
Since we are nearing earnings season, it may be a good time for you to sell some or all of your LEAPS options. Why sell during this time? Well, a lot of the underlying stocks we have LEAPS for have risen, meaning that a lot of our LEAPS are in the green. Also, since we are nearing earnings, IV is a little higher, which also increases the extrinsic value of our LEAPS options.
If you want to hold onto some of your LEAPS, you totally can. We would recommend that these LEAPS have the furthest expiration date and have at least around a delta 0.80, just in case your underlying stock takes a short-term dive.
Again, if you want to be more on the conservative side, we would recommend selling all of your LEAPS, so you can lock in your gains. You can then reconsider entering back in after earnings, in which IV will be a little lower.
Trade safely and responsibly! 🙏
Steve and the Call to Leap Team
The following article is strictly the opinion of the author and is to not be considered financial/investment advice. Call to Leap LLC and the author of this article does not claim to be a registered financial advisor (RIA) or financial advisor. Please visit our terms of service and privacy policy before reading this article.