LEAPS stands for Long-Term Equity Anticipation Securities, which basically refers to buying a CALL/ PUT option contract with a long expiration date, at least 6 months or more. Essentially, if you are buying a LEAPS CALL, the strategy is to watch the share price grow, which translates to an increase in the value of the … Continue reading How Does LEAPS Works And How I Use LEAPS To Maximise Gains?
Tag: how options work
I Sold My DBS Bank Shares To Fund This (25 Oct 21)
The Singapore bank stocks such DBS, UOB and OCBC, have always been my favourite stocks for many years. From the early years of my investing journey where I find them too expensive to the opportunity I get in 2020 to buy them cheap and thus get a profit out of them, they have always been … Continue reading I Sold My DBS Bank Shares To Fund This (25 Oct 21)
Why I Buy OTM LEAPS With A Low Delta?
I have been asked why I am buying Alphabet LEAPS CALL option with a high strike price and low delta. A low delta means a low premium price increase/ decrease with the corresponding share price movement. There are a few reasons why I choose a low delta for my LEAPS options. Lower Delta, Lower PremiumThe … Continue reading Why I Buy OTM LEAPS With A Low Delta?
How Options Trading Works (Using Travel Insurance Plan As Analogy) | How does PUT Option Works?
While getting ready for our holiday, we would usually buy a travel insurance for a peace of mind. In doing so, we pay a premium (fees) to the insurance company to cover us for the period of our holiday. Whether there is a claim or not, the insurance gets to keep the premium that is … Continue reading How Options Trading Works (Using Travel Insurance Plan As Analogy) | How does PUT Option Works?
Learning Investment With Jason Cai 