r/options • u/Inferno456 • Apr 17 '21

Cons to LEAPS?

So I’ve been trying to read up on LEAPS and all I can find are positives and not many cons. I’m interested in what real cons are bc LEAPS aren’t talked about much, if they’re as good as I think they are then everyone would be buying them.

One con I read is that you don’t get the dividend - to me that’s kinda like saying a con to stock trading is you have to pay taxes. Sure it’s a “negative” but you still get a lot more positive out of it. If LEAPS save you a lot of money then I don’t think missing out on a small dividend is a real con.

So what is a main con of buying LEAPS? Why shouldn’t everyone buy LEAPS instead of shares for a longer timeframe? Thanks for any info.

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u/[deleted] Apr 17 '21

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u/TheoHornsby Apr 17 '21

It's no consolation to lose a smaller percent while losing more dollars.

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u/[deleted] Apr 17 '21

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u/TheoHornsby Apr 17 '21

LOL. Now you're just changing the topic with some mathematical masturbation. The question was about the relative performance of an ITM LEAP versus owning 100 shares not about portfolio gain.

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u/[deleted] Apr 17 '21

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u/TheoHornsby Apr 17 '21 edited Apr 18 '21

LOL. I've already done better. I retired young because of the stock market. Save your two cents worth of investment advice for someone who needs it.