On 25 October 21, when the news broke out that Hertz was looking to order 100,000 vehicles from Tesla to add to their rental fleet, Tesla’s share price jumped 16% from $909 to $1025. I bought a LEAPS CALL contract and the details are as follow:
Type of Option: LEAPS CALL
Strike Price: $1800
Expiry Date: 16 Sept 2022
Premium Paid: $2980
Delta: 0.194
Share Price When I Bought The LEAPS: $1024
As you can see from the contract details, this purchase was more to capture the short-term uptrend momentum and to use LEAPS to collect as much gain as I can. I chose a high strike price, low delta, short expiration date, all for the purpose of a lower premium.
Today (3 Nov 21), 10 days later, I sold the LEAPS Contract for $8,160 and locked in a profit of $5,180, which is 173.8% returns on my initial capital of $2980. I sold the contract when Tesla’s share price was at $1,174.
With the share price gaining 14.6% in 10 days, which is not too bad by itself, my premium has gained 173.8%. This is the reason why I believe LEAPS is one of the most powerful options strategies that one can use. The maximum risk is losing all the premium but the upside is unlimited. This contract also surpasses my previous record of 102.1 % return over 15 days for AMD LEAPS.
To understand more about LEAPS, do read these articles:
How Does LEAPS Works And How I Use LEAPS To Maximise Gains?
Why I Buy LEAPS With A Low Delta?
I Was Laughed At When I Told Them I Bought LEAPS With A Low Delta
Understanding How CALL Option Works
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Keen to learn about options trading but do not wish to pay for expensive courses, this newbie guide will help gain the knowledge and fundamentals to understand options better. And it’s totally free!
The Newbie’s Guide To Options Trading
The LEAPS Strategy has helped me make more than USD120,000 in 2021. Here’s all you need to know about this strategy that can help you increase your wealth exponentially:
The Ultimate LEAPS Options Thread
Looking for ideas on what stocks to invest in or which stocks to trade? You can take reference from what I have been buying or selling. I try to update them as soon as I can in this section, as well as share my thoughts behind executing these trades:
MY TRADES
Excited to start your trading journey or perhaps try out with a paper trading account to build your confidence in trading? Check out this step-by-step to help you get started:
How To Buy Options on Interactive Brokers (Step-By-Step)
I watched tons of videos on YouTube since 2020 and if you are wondering if there are any useful channels that you can subscribe to for learning market trends, TA, FA, check out this compilation here:
My Secret Weapons For Options Trading: I Watch These YouTube Financial Channels Every Day
I concluded my first year of options trading with more than USD160k of gain, see how I do it and the capital I use for every month to give you a sensing of the percentage yield I get out of my gains:
1st Year Options Trading Recap: The Journey Towards SGD$217,509 Profits In 2021
This blog is as authentic and as transparent as I can share, I do not just show the wins and hide the loss. I have made some very bad decisions in the first 8 years of investing and paid a huge price for them. Here is the loss I have accumulated during these years. I hope you learn some lessons from my mistakes.
I Cut $135,715 Worth Of Losses In The Last 1.5 Months
Learning Investment With Jason Cai 