The LEAPS Strategy has brought great returns for me this year and I currently own 84 LEAPS contracts. As you can see from my LEAPS portfolio, I am heavy on the big tech companies such as Alphabet (Google), Facebook and Apple, as well as the semiconductor powerhouse duo of AMD and Nvidia. These LEAPS have made almost 80% of my total LEAPS portfolio.
See the returns of my LEAPS portfolio here:
How LEAPS Options Trading Strategy Gave Me Insane Returns In The Last 4 Months
The rationale is simple, LEAPS works best when stocks are moving upwards. LEAPS helps to magnify the gain brought about by share price gain, i.e. what you get out of LEAPS can be 4 or 5x or even 10x the normal share price gain. It has unlimited upside in terms of rewards. These fundamentally strong big tech and semiconductor companies, which are among the most valuable companies in the world, are likely to see their share price increase over time. Thus, the chances of success are significantly higher when I buy LEAPS on these companies.
Moving forward, I intend to take profits by selling off the LEAPS that expire the earliest, i.e. June 2022, followed by those expiring in Sep 2022. Using the proceeds that I have collected, I will be buying longer-term LEAPS (expiring Jan 2024) for these companies as it gives me a longer runway to watch these companies grow in value and thus, maximize my profits.
Related Articles:
How Does LEAPS Works And How I Use LEAPS To Maximise Gains?
Why I Buy LEAPS With A Low Delta?
[Proof Of Concept] Why LEAPS Options With Low Delta Works
How I Use LEAPS To 10X My Returns
Thank You Tesla & Elon Musk For The 470% Profits
Learning Investment With Jason Cai 
Thanks for all the sharing. Can I ask, by employing this LEAPS strategy, are you leaning more towards investing, or is it more of a shorter term trade mentality? Have u ever been in a losing position for a LEAPS call, and how long did u stay in that trade, or how did u manage that position? I’ve always been told LEAPS do not give the best bang for your buck..
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Hi Aaron, great questions you have there! I am more inclined towards long term investing and making use of leaps to magnify my gain. Because I know big tech will eventually go up in the longer term. Just compare their prices to half a year ago and you will understand why. Yes, I do have losing trades in disney and pinterest. I try to average down the prices go down significantly. I will cut loss only when time is running out soon, i.e. near expiration date. So far, leaps made up 80% of my 6-figure gain this year.
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