If I think Ford is going up over the next few years, what is the best leap to buy? I’m looking at jan 2027($12 and $15) FORD CALL LEAPS byu/alcoholisthedevil inoptions Posted by alcoholisthedevil
theoptiontechnician on September 23, 2024 3:03 pm I would buy as much time as I could. For some reason, people here think twice, The time means twice the premium. They are wrong , there’s more of a discount for more time . Sometimes, you get an extra 2 years for paying an extra $500-$1000 bucks.
LabDaddy59 on September 23, 2024 3:07 pm Generally speaking, when buying a LEAPS call, you want the strike to be ITM or, at worst, ATM. Realize that for the $15 strike the stock would need to rise 47% by expiration to break even (delta 34.2). The $12 strike has a 26% increase to breakeven (delta 55.9). The $10 strike has a 14% increase to breakeven (delta 75.4).
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I would buy as much time as I could. For some reason, people here think twice, The time means twice the premium.
They are wrong , there’s more of a discount for more time . Sometimes, you get an extra 2 years for paying an extra $500-$1000 bucks.
Generally speaking, when buying a LEAPS call, you want the strike to be ITM or, at worst, ATM.
Realize that for the $15 strike the stock would need to rise 47% by expiration to break even (delta 34.2).
The $12 strike has a 26% increase to breakeven (delta 55.9).
The $10 strike has a 14% increase to breakeven (delta 75.4).