LEAPS OPTIONS

In the last educational piece we talked about trading options with a small account using the SAT Frameworks to trade.

But trading v. investing are different models, we talked about that in this educational piece here.

And each model varies based on the goals of each investor, their market view and their company view.

These last two weeks $HIMS ( ▼ 5.24% ) stock was up +90% in 8 trading days and there were plenty of ways to play it.

We played with with LEAPS because our COMPANY VIEW was long-term, not a short-term day trade or based on the market view of the $SPY ( ▼ 1.69% ) which makes this educational piece we’re going to cover fun.

Most amateurs stick to trading or investing; they rarely shift between them and if any of you follow your favorite day trader on YouTube making trades for 20 seconds at a time then you know this idea is foreign

LEAPS allow you to invest, not trade, an idea for time: you are buying time. That is how you want to think of it when you use LEAPS and we’re going to explore that in this educational piece.

We’re going to break down three things:

• How to to conceptualize the idea of LEAPS

• When the ideal time to use them is

• Using LEAPS on other ideas (turnarounds or shorts)

And we’re going to take the recent $HIMS ( ▼ 5.24% ) move we saw and use that as a mini-case study so you can recognize the situations like this so you can catch the next stock and use LEAPS to express your view.

Subscribe to The LongVol