LEAPS strategy: 1. Buy a LEAPS call - expiring in 18-24 months for...
Coach Mak | Know Your Money@WealthCoachMak
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Aug 18, 2025
~1 min read
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LEAPS strategy:
1. Buy a LEAPS call - expiring in 18-24 months for a stock you think will increase in price
2. Sell weekly/monthly calls against the long call to reduce your cost basis
3. If the short call gets challenged, BUY the shares
4. As an alternative to 3, you can ROLL UP AND OVER the short call
5. To protect your troubled short call you can buy an OTM long call - if the price keeps going up, the short call will get deeper in trouble. But your long call will be up
1. Buy a LEAPS call - expiring in 18-24 months for a stock you think will increase in price
2. Sell weekly/monthly calls against the long call to reduce your cost basis
3. If the short call gets challenged, BUY the shares
4. As an alternative to 3, you can ROLL UP AND OVER the short call
5. To protect your troubled short call you can buy an OTM long call - if the price keeps going up, the short call will get deeper in trouble. But your long call will be up
