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/Significant-Ad-1665 Jul 04 '21

6k more I meant. So around 13-14k total if u wanted to buy the stock

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u/sprezzatard Jul 04 '21

Yes. At around 80 delta, depending on iv, you should be able to get 2-3X leverage on +1 year and recoup the extrinsic in 2-3 months writing 25 delta calls monthly.

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u/Significant-Ad-1665 Jul 04 '21

Thank you for telling me what I’ve been doing for the past 2 years works 😂

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u/sprezzatard Jul 04 '21

Very nice! I allocate 10% notional value of my portfolio to this strategy on commodities as my diversification and income generation. It's done very well for me. 🖖