Options Trading, LEAP, Leaps, Uncovered Options, Naked Options, QQQQ, SPY, QQQ, Trading System, Trading Strategy, signals, system

LEAPs - Long-term Equity AnticiPation Securities

Leverage is one of the great advantages that options provide. For a small amount of money, you can control a large holding in an asset. You can significantly increase your rate of return, since you participate in the gain from the price movement of the underlying asset for a fraction of the cost of that asset.

One must be careful to avoid a common mistake. To allow for the asset to make its move, make sure that you buy enough time. Because you know the asset will make its move in a few days or weeks, it can be tempting to buy the cheap option with one month expiration or less. The market is always full of surprises. To give yourself a margin of safety in case your expected move is delayed, it is generally better to allow at least two, three or four months. The additional time reduces your risk significantly, because it doesn't cost that much more (its not a linear function).

LEAPs are Long-term Equity. An option whose expiration is more than 9 months away is a LEAP. These options always expire in January and can usually be bought one, two or three years out.

People can take advantage of long-term moves in an asset at a fraction of the cost of owning the asset by buying LEAPs.

One single winning trade
could pay for the membership for years to come.

DISCLAIMER: THIS INFORMATION IS INTENDED FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE ANY FINANCIAL ADVICE. RISK IS INVOLVED IN ALL STYLES OF MONEY MANAGEMENT. Uncovered options trading involves greater risk than stock trading. You absolutely must make your own decisions before acting on any information obtained from this Website.

The return results represented on the web site are based on the premium received for the selling options short and do not reflect margin. It is recommended to contact your broker about margin requirements on uncovered options trading before using any information on this web site. Use our "Trade Calculator" to recalculate our past performance in relation to the margin requirements, brokerage commissions and other trading related expenses. Past performance is not indicative of future results.