Free Download LEAPS Trading Strategies- Powerful Techniques for Options Trading Success by Marty Kearney – Includes Verified Content:
Understanding LEAPS in Options Trading
Marty Kearney’s LEAPS Trading Strategies – Powerful Techniques for Options Trading Success offers a deep dive into the world of long-term options. This guide focuses on LEAPS (Long-term Equity Anticipation Securities), which provide extended expiration periods—up to 30 months—far beyond traditional options. These extended durations help traders manage time decay more effectively while planning long-term trades.
The Strategic Advantage of LEAPS
LEAPS are designed to reduce the negative effects of time decay, which erodes an option’s value as expiration nears. Kearney emphasizes that with longer-term contracts, traders can focus on the fundamentals of the underlying asset without being pressured by short-term volatility. This makes LEAPS ideal for patient investors aiming for long-term stock appreciation.
Core Benefits of Using LEAPS
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Reduced Time Decay Risk: Longer expiration minimizes loss from time value.
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Focus on Long-Term Fundamentals: Ideal for fundamental analysis-driven strategies.
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Increased Leverage: LEAPS require less capital upfront, providing amplified exposure to underlying assets.
These advantages make LEAPS appealing for traders who want more time to be right in their market analysis.
How LEAPS Are Priced
Understanding LEAPS pricing is crucial. Kearney breaks down the components:
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Strike Price: Affects the balance between risk and reward.
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Intrinsic Value: The built-in worth of the option based on current stock price.
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Time Premium: Extra value due to time remaining before expiration.
Traders need to assess all three to choose LEAPS contracts that align with their risk tolerance and market outlook.
LEAPS Strategies You Can Apply Today
Kearney outlines multiple methods to effectively use LEAPS:
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Stock Replacement: Gain stock-like exposure with less capital by buying LEAPS instead of shares.
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Covered Calls with LEAPS: Own LEAPS and write shorter-term calls to generate income.
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Portfolio Protection: Use protective puts or collars to hedge long-term holdings.
These strategies offer flexibility and risk control, especially in volatile or uncertain markets.
Real-World LEAPS Example
Imagine a stock projected to grow over the next year. Instead of spending $10,000 to buy 100 shares, a trader could purchase a LEAPS contract for $1,000. This provides similar upside potential with less capital at risk—a strategy Kearney demonstrates to show how traders can leverage market opportunities while maintaining flexibility.
Mastering LEAPS Trading Symbols
One overlooked aspect of LEAPS trading is symbol interpretation. LEAPS symbols include:
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Underlying Asset Code
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Expiration Date Code
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Call or Put Indicator
Knowing how to read these symbols helps traders avoid errors and place accurate orders. Kearney’s guidance demystifies these symbols for more confident trading.
Final Thoughts on LEAPS Trading Strategies
“LEAPS Trading Strategies – Powerful Techniques for Options Trading Success” by Marty Kearney is a thorough guide for traders seeking to elevate their options game. By focusing on long-term securities, strategic planning, and risk management, Kearney empowers readers with practical tools and expert-level insights.
For those looking to build smarter portfolios, reduce risk, and generate better returns over time, LEAPS represent a valuable instrument—and Kearney’s guide is the roadmap.
