{"id":7426,"date":"2020-04-07T11:13:02","date_gmt":"2020-04-07T15:13:02","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?page_id=7426"},"modified":"2020-04-07T11:13:02","modified_gmt":"2020-04-07T15:13:02","slug":"the-power-of-leaps","status":"publish","type":"page","link":"https:\/\/www.mainstbeatswallst.com\/?page_id=7426","title":{"rendered":"The Power of LEAPS"},"content":{"rendered":"

Back on December 2, 2019 I bought 10 contracts of the Walmart (WMT) 1\/21\/22 $120 Calls. This is a LEAPS<\/a><\/span>. A LEAPS is an option with over a year before expiration. This particular option had 2 years before expiration. With WMT stock at $118, at the time, I paid a premium of $13.50. On the 10 contracts, or 1000 shares, the total premium was $13,500. I held this position through the coronavirus collapse and I decided to sell it today, still making a great profit. The stock wasn’t up today with the market but the stock was at $125, close to it’s all time high. With yesterday and today’s up days I don’t think the market will stay up. We are still no where near out of the woods. I think there’ll be another bunch of down days. With this in mind, and sticking with my philosophy of taking profit, I sold this LEAPS. \u00a0I received a premium of $18.50. In just 4 months with a $13,500 investment I sold this position for $18,500. That’s a Rate of Return<\/a><\/span> of 37% in 4 months. This is the power of LEAPS.<\/p>\n

12\/2\/19 \u2013 Buy to Open 10 WMT 1\/21\/22 $120.00 C @ $13.50\u00a0<\/strong><\/p>\n

4\/7\/20 \u2013 Sell to Close 10 WMT 1\/21\/22 $120.00 C @ $18.50 <\/strong><\/p>\n

\u00a0Profit +$5000<\/strong><\/h4>\n

Let’s say on Dec 2, 2019 I bought the 1000 shares of WMT. That would have cost me $118,000. If I sold today at $125 I would have made a profit of $7000. That’s a 5.9% Rate of Return. With me buying the LEAPS I invested $100,000 less than and made almost as much. For the last 4 months I used the $100,000 to make more money. LEAPS are a great way to leverage your money.<\/p>\n

As I make money I’ll be investing in LEAPS and hopefully make a lot more gains when this market recovers. If you look at my “Active Trades\/Current Positions<\/a><\/span>” page you will see I already started buying LEAPS slowly. I say slowly because I’m only buying 1 or 2 contracts. When the market pulls back again I’ll be buying more of what I already own.<\/p>\n

With this WMT trade you see a $5000 profit. I hope you’ll be seeing a lot more of these gains with my present and future LEAPS.<\/p>\n

Successful Trading,<\/p>\n

Steve<\/p>\n

The Options Coach<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Back on December 2, 2019 I bought 10 contracts of the Walmart (WMT) 1\/21\/22 $120 Calls. This is a LEAPS. A LEAPS is an option with over a year before expiration. This particular option had 2 years before expiration. With WMT stock at $118, at the time, I paid a premium of $13.50. On the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-7426","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-1VM","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7426","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7426"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7426\/revisions"}],"predecessor-version":[{"id":7427,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/7426\/revisions\/7427"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7426"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}