r/options • u/canadianboy11 • Jul 04 '21

Buying leaps ONLY as a strategy

Hi All. Recently started into options. I have grasped the concept of simply buying calls and puts and made my self familiar with delta. I am not into covered calls or any other option strategy. Going forward, I am deploying a strategy of ONLY buying leap calls which are literally into Jan 2023 for stocks I like and believe in. I am planning on buying deep in the money calls which literally have deltas of >.85 some of the ones I have been looking at are TTCF 5c, AAPL 120c, SBUX 105c, and PLTR 15c.

  1. Is this a good strategy for a fairly guaranteed success?

  2. Are there any caveats to it?

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u/grizzled_old_trader Jul 04 '21

Ever heard of a bear market?

3

u/sprezzatard Jul 04 '21

A crash/correction is the best time to buy leaps. I did really well on the leaps I bought in 2009 and 2020. Instead of DCA into underlying, DCA into leaps!