For me Leaps create the opportunity to profit from an early rise with leverage. If the rise takes much time, the leverage will be lower to even negative because of premium. For I am convinced of a big rise, but still have no timeframe. Plan on taking profits and rolling 'm further in time, per half year.
See the first post in this thread - you do need to understand the basics before trading.
For C - is the 227/230 expected within 2 weeks? Plan to wait it out till A and B are confirmed and get some spread at +222.5/-227.5 exp 11/24.
This is where we can make a bit of observation. If 227 is reached in a similar manner as the initial run from 194 - 227, then chances are we'll break 227 and go even higher. If it drags out with a lot of overlapping, be careful.
Third surgery day this week (and I'm supposed to be retired). I probably could have gotten -175/+155 earlier. I might have to go to 180/160 now. I want at least 260/280 on the call side.
Self discipline is the hardest parts of playing the casino. But you seem to have it in spade.I took the .01 early close for my 205 puts expiring today. If we happen to get a late day swoon then I can just buy the shares that I want. I also have the option available to sell new puts should that later day swoon happen.
Of course the most likely outcome is that nothing meaningful happens. We'll still be in this 215 range later in the day and I could have left it alone and earned that final penny. These are the decisions that my trading rules leads me to. I make these decisions so that the occasional (1/year; 1/5 year?) events don't wipe out all the other goodness. Since I've had more than 3 of those events in the 3 years I've been at this, the cost is cheap and the incremental flexibility is much more valuable.
It's getting really tough continuing to sit out and not just buy up the next batch of shares. Or even go crazy and also buy leaps. Sitting, watching. Wishing for a $200 share price
EDIT: While I was at it I considered the 230 strike cc for next Friday. I was guessing the share price hadn't move far enough to make that an appealing open and I was right. About $1 credit to open today - I'll wait for another positive move on Monday before I open that call. Or a negative move on Monday to open the replacement for today's put. Since I've already got a put open for next week (190 strike), the next put I open will be the week after.
Off topic AAPL: Happy to have switched to +C 190 11/24 in two moves for same money (so a bit less in count (7:10) ) after hitting SP182.5. Already on profit, compared to initial investment in P 172.50.
Leaps are more expensive cause they have greater (time) value. I dont have to time the market perfectly with them. By buying long dated calls, i'm placing a "bet" that the stock price will increase within the next few months. And if it does, I get about twice the returns as if I were to hold stock. (I.e. for every 10% rise in SP my leaps rise at least 20%, ballpark, depends on many factors).
Jim said it best - Making money with Friends. Didn't realize CPI was on Monday. Between CPI, FOMC, and constant Fed talks, the rollercoaster never seems to end....
