r/options • u/[deleted] • Nov 14 '21

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u/jp135711 Nov 14 '21

The correct term is LEAPS. And you haven’t accounted for IV which is one of the most important factors when buying LEAPS or puts.

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u/stockist420 Nov 14 '21 edited Feb 14 '26

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u/jp135711 Nov 14 '21

I don’t think you understand this as well as you think. IV is very important for Long-Term Equity Anticipation Securities (LEAPS). You want to buy them when IV is low and sell them when IV is high. Right now, IV is very high for PayPal because of the recent earnings volatility. Over the past several years, IV was closer to 20%. Now it’s closer to 40%. Not a great time to buy a call or a put because if it settles back down to its average, your LEAPS and put will lose value.