This episode dives deep into Long-Term Equity Anticipation Securities (LEAPS) and their strategic use, particularly in stock substitution strategies. Hosts Mark Longo and Dan Passarelli (Market Taker Mentoring) discuss the fundamental aspects of LEAPS, focusing on their sensitivity to volatility (Vega) rather than gamma, and explain how they can offer a more capital-efficient alternative to outright stock purchases. They elaborate on different strategies, such as using LEAPS for a synthetic covered call, or 'poor man's covered call,' to reduce the overall cost and risk. Additionally, they highlight the need for diligent management of these trades to avoid unwanted outcomes, like forced exercise of the option.

01:04 Welcome to Options Bootcamp

04:15 Basic Training: Learning Options Trading

07:52 Discussing Leaps: Long-Term Equity Anticipation Securities

16:57 Stock Substitution Strategy with Leaps

22:48 Poor Man's Covered Call Strategy

26:15 Conclusion and Next Steps

Options Boot Camp 349: Forget 0DTE...Let's Talk About L.E.A.P.S!!!

Options Boot Camp