🔒 Premium Membership Positions - October 31, 2021
- Call to Leap
- Oct 31, 2021
- 2 min read
Hey Advanced Traders!
LEAPS
Because many companies delivered great reports and we had some pump and dump action, I am planning on buying LEAPS for the following companies: AAPL, MSFT, MA, and AMD. This may be a great opportunity to buy a LEAPS option if you have been patient with saving your Wheel premiums and monthly deposits as cash.
AAPL:
Action: Buy to Open
Expiration Date: March 17, 2023
Delta: 0.77
Strike: $120
Premium: ~$3795
MSFT:
Action: Buy to Open
Expiration Date: June 16, 2023
Delta: 0.72
Strike: $280
Premium: ~$7645
MA:
Action: Buy to Open
Expiration Date: January 20, 2023
Delta: 0.72
Strike: $290
Premium: ~$7030
AMD:
Action: Buy to Open
Expiration Date: January 20, 2023
Delta: 0.73
Strike: $100
Premium: ~$3270
Like what I always say, please make sure that you are following the general guidelines of purchasing LEAPS options. I recommend using the premiums you generated from your Wheels, previous LEAPS, and spreads to fund at least half of the LEAPS you are thinking of buying. I also would prefer if you didn't use more than 10% of your portfolio to purchase LEAPS as they can also quickly lose value in a downward trend.
Feel free to tweak any of these numbers around to fit your own risk tolerance. If you want to be more conservative, you can choose to opt out for further expiration dates and higher deltas. They will, however, be a little more costly due to the higher intrinsic and extrinsic values built into them.
Be mindful of the bid-ask spread when purchasing your LEAPS. I recommend using a limit order and to enter a value closer to the bid price. If the market maker doesn't fill your order, you can then try again by increasing your by $25-50 increments until your order is filled.
Bear Call Spreads
Great job to all of you who set up your bear call spreads on AMD last week. Hopefully you were able to close your positions as you experienced the volatility crush that occurred right after the company delivered their results. 👍
Again, you can use the profits you made to buy more DOW30 dividend-paying stocks to compound your portfolio. 😀
Stay safe this weekend! Happy trading and investing!
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.
