[6 Dec Trades] Added 3 More LEAPS (AMD, Nvidia & Alphabet)

Nvidia was down by $26 (8.4%) due to negative news that the ARMS deal is facing more obstacles. I took the chance to buy another LEAPS when Nivida was trading at $291. Nvidia is my strong conviction stock and I believe they are going to do well, whether with the ARMS deal or not. With the ARMS deal, they are going to be peerless but without it, they are still going to be the dominant player in the metaverse.

I also added an AMD LEAPS, when the share price was also down 6% and trading around $137.77. These 2 semiconductor stocks have fallen from their peak prices but the future still looks very bright for both of them.

The last LEAPS that I bought was Alphabet (GOOGL) because now is the perfect opportunity to load up more on my high conviction stocks while the market was on a downtrend. Alphabet’s stock has stayed around the 2,800 range for a few weeks now but I believe they will not stay here for the long term. I have faith that they will hit $3,000 and beyond sometime next year.

Moving forward, as the LEAPS that I am buying now will be at least 1.5 years from now (Jun 23 to Jan 24), I have a long runway ahead for the price to rise up again and to earn profits off my LEAPS when I eventually sell them off. If the market goes up, I will be waiting for an opportunity to sell the LEAPS that expire the soonest. But, if the market goes down, I will be averaging down on these Jun 23/ Jan 24 LEAPS. In the coming months, I may even be buying LEAPS that are expiring in March or Jun 24. The premium may be higher as compared to the LEAPS expiring in 2022 but it is a good safety net and risk management strategy just in case the stock market turns bearish due to the interest hike or other negative catalyst.

2 thoughts on “[6 Dec Trades] Added 3 More LEAPS (AMD, Nvidia & Alphabet)

    1. Hi Deb, great question! There is always a trade-off. IV will drop when prices are rising, but when that happens, delta increases, premiums are pushed up. We can never have the perfect combination of buying at high delta, low premium, low IV, and then selling at high IV, high premium. Ultimately, I made the decision to average down on my LEAPS because the premium has dropped due to the share price dropping lower than the previous round of purchase. Thus, with the same strike price and expiration date, I am paying lesser now because the share price has dropped.

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