LEAPS Options Explained - How to DOUBLE Your Stock Returns

Check out my entire playlist on Trading Options here: https://www.youtube.com/playlist?list=PLscTZuOqKWIxSZzy4ObKWDznEsCot_1HU 💯 LET’S CONNECT 💯 📷 Instagram @JakeBroe 👉 https://www.instagram.com/jakebroe/ 🐦 Twitter @Broe_Jake 👉 https://twitter.com/broe_jake 👇 👇 Watch My Other Videos Here 👇 👇 ★ The Greeks Explained - How to Trade Options https://youtu.be/3C-NQadRRfo ★ How to Sell Covered Calls - Options Trading Explained https://youtu.be/FS-pzG_Oyto ★ The Wheel Strategy - Options Trading Explained https://youtu.be/vro-6v1n50o 📷 📷 My YouTube Equipment 📷 📷 ► My Camera 👉 https://amzn.to/2UZpFwA ► My Wide-Angle Lens 👉 https://amzn.to/2Qwf3Sq ► My Wireless Microphone 👉 https://amzn.to/2QBV9W0 ► My Shotgun Microphone 👉 https://amzn.to/36bdLTv ► My Lighting 👉 https://amzn.to/2F5Ey7V ► My Light Diffusers 👉 https://amzn.to/2tjF8fG What flag is that? 👉 https://amzn.to/357sptp What is your background? 👉 https://amzn.to/2BCHRp1 ================ 📚 📚 Books That Changed My Life 📚 📚 📗 How to Win Friends & Influence People 👉 https://amzn.to/2F3ahGC 📕 Dumbing Us Down 👉 https://amzn.to/2spodrZ 📘 Quiet - The Power of Introverts 👉 https://amzn.to/36b2ti3 📙 The Red Queen 👉 https://amzn.to/2QzNW8W 📔 Rich Dad Poor Dad 👉 https://amzn.to/3bliFyP 📒 Why Nations Fail 👉 https://amzn.to/3fWZ3Em ================ Long-Term Equity Anticipation Securities (LEAPS) What Are Long-Term Equity Anticipation Securities (LEAPS)? Long-term equity anticipation securities (LEAPS) are publicly traded options contracts with expiration dates that are longer than one year, and typically up to three years from issue. They are functionally identical to most other listed options, except with longer times until expiration. They were first introduced by the Chicago Board Options Exchange (CBOE) in 1990, and are now ubiquitous. As with all options contracts, a LEAPS contract grants a buyer the right, but not the obligation, to purchase or sell (depending on if the option is a call or a put, respectively) the underlying asset at the predetermined price on or before its expiration date. Understanding Long-Term Equity Anticipation Securities (LEAPS) LEAPS are no different from short-term options, except for the later expiration dates. Lengthier times until maturity allow long-term investors to gain exposure to prolonged price movements. As with many short-term options contracts, investors pay a premium—upfront fee—for the ability to buy or sell above or below the option's strike price. The strike is the decided upon price for the underlying asset at which it converts at expiry. For example, a $25 strike price for a GE call option would mean an investor could buy 100 shares of GE at $25 at expiry. The investor will exercise the $25 option if the market price is higher than the strike price. Should it be less, the investor will allow the option to expire and will lose the price paid for the premium. Also, remember each options contract—put or call—equates to 100 shares of the underlying asset. An investor must understand that they will be tying funds up in these long-term contracts. Changes in the market interest rate and market or asset volatility may make these options more or less valuable, depending on the holding and the direction of movement. ================ 📧 E-mail me at: JakeBroeYT [at] gmail [dot] com Official business inquiries can be sent here. Personal e-mails will be discarded. ================ #TradingOptions #LEAPS #DeepInTheMoney ================ DISCLAIMER: This video is for entertainment purposes only. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video. ADVERTISER DISCLOSURE: Jake is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Additionally, other referral links are included and this channel does receive compensation for sending traffic to partner sites. Shopping through our links is an easy way to support the channel and we appreciate and are super grateful for your support!