How to Find the Right LEAPS Call for You? | #OptionsHandbook EP050
If you’re bullish on a stock’s long-term potential but don’t want to commit a lot of capital to buy shares outright, holding LEAPS Call options can be a more flexible and efficient alternative.
Are LEAPS Calls right for you? And how do you pick the one that fits you best? The Options Handbook has the answers!
(Don’t miss the mini challenge at the end! 🎁)
▶ What is a LEAPS Call? 📜
A LEAPS Call is a long-term option with an expiration date of more than one year—sometimes even over two years.
In plain English, a LEAPS call lets you control the upside potential of a stock with less capital compared to buying shares directly.
▶ Who Is It For? 🤔
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Investors who believe in a stock long-term but want to keep more cash free.
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Those looking to limit risk but still capture upside.
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Anyone who wants leverage, but without the fast-bleed time decay of short-term options.
▶ How to Choose the Right LEAPS Call? 🎯
Here's your shopping list:
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Go for Delta 0.8 or Higher: Delta measures how much the option price moves when the stock moves. A Delta above 0.8 means your LEAPS call will act much like the stock itself, less guessing, more tracking.
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Check Liquidity: Some LEAPS options don't trade much, meaning wide bid-ask spreads (translation: higher trading costs). Stick to options with good volume.
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Watch IV: Buy when volatility is low, if it rises, your LEAPS gets a value boost, even if the stock price hasn't budged.
🎉[Mini Events]🎉
How to Join
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Flip to Chapter 5 of the book and find the section about LEAPS Call. Snap a photo and post it in the comments along with your own short insight! 📸
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If you don’t have the book, just share your thoughts on this article.
Example: “LEAPS Calls are a great fit for traders who prefer value investing. Happened to read about this exact section in the book today.”
Prizes
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Event Period: from now → Sep 23, 2025
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- ChloeKeynes·09-16Love how you break down LEAPS Calls! [Great]LikeReport