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Stealth LEAPS

corneliussmurphy 0

Happy New Year! I hope this post finds you happy and healthy and ready to embrace 2021 with vigor.

As 2021 starts, I’ll invite you to follow along as I document my latest options strategy called “STEALTH LEAPS”. This strategy encompasses small, short-term gains in monthly plays completely under the radar followed by heavier investment in LEAPS (long-term equity options). I plan to focus on just a few companies I followed in 2020 to keep it simple. The three companies I’m betting (literally) on are: Apple (APPL), Tesla (TSLA), and Quantumscape Corp (QS).

For the short-term plays, I’ll be playing 30-45 day calls just a few points out of the money in a stealth mode. Hopefully I’ll make some bread-and-butter and with those gains, I’ll then double-down after I pay myself back and go long on an option LEAP.

An example would be APPL call, February 19, 2021 expiration, strike price of 150. If I bet $1000 on this trade and make $500, then I’ll immediately add $500 to my pool of gains and place a bet on an at-the-money call for APPL February 2022 going long.

UPDATE – 3/1/2021 . . . So far, this strategy has been a miserable failure and I’ll be revisiting this one just as soon as possible, so stay tuned again.