🔒 Premium Membership Positions

Hey Advanced Traders!

Let's talk about some V and MA LEAPS you can consider entering.

Since both of these stocks broke out of their downward channel and had around a 5-10% bounce from their short-term lows, it may be a signal to us that institutions may be doing some sort of rotation and putting their money back into these companies.

Here's V:

Here's MA:

I am currently eyeing the January 20, 2023 LEAPS, rather than the January 19, 2024 LEAPS because the 2023 LEAPS have more open interest and liquidity, meaning that they may be easier to buy. Again, if you want to be extra safe and purchase a longer dated LEAPS, you can totally do so. I do not recommend you buying anything shorter than a January 20, 2023 expiration date as you may not have enough time to be correct with the direction of the underlying stock.

Please follow my Level 3 Guidelines before purchasing a LEAPS option.

The LEAPS is/are funded by your Wheel premiums.
The higher delta you choose, the relatively safer it will be since these LEAPS have a higher intrinsic to extrinsic value ratio.
You do not exceed 10% of your portfolio in LEAPS options.

Here are some LEAPS recommendations. You can see which one fits your risk tolerance.

Lower risk: Buy 1 January 20, 2023, Delta 0.81, $180 strike LEAPS for $6,085.

Moderate risk: Buy 1 January 20, 2023, Delta 0.72, $200 strike LEAPS for $4,605.

MA:

Lower risk: Buy 1 January 20, 2023, Delta 0.81, $270 strike LEAPS for $10,545.

Moderate risk: Buy 1 January 20, 2023, Delta 0.74, $300 strike LEAPS for $8,345.

If you already own LEAPS on V and MA and are still in the red, you might want to hold off on buying any more since I don't feel comfortable with you having too large of a position size. An alternative for you is to purchase some shares outright since there is no theta decay when purchasing actual shares. Like always, feel free to tweak the numbers around for your LEAPS so it fits your own risk tolerance.

I am planning on holding these LEAPS until a couple days before the October or January earnings date. However, you can always consider selling them when you make a quick $500-$1000 profit. I would recommend that once you make the profit, you can utilize the cash to purchase more long-term shares so you can further compound your portfolio.

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.