You might have not heard of LEAP options, but you’ve mostly likely heard of a very successful example.
In early 2021, Reddit user in /r/WallStreetBets Keith Patrick Gill (better known as /u/Deep(expletive)Value or DFV) made headlines for turning a $53,000 investment into nearly $50 million in one year by betting big on GameStop. Keith achieved this by employing a LEAP (Long-Term Equity Anticipation) option strategy.
A LEAP option is a long term option that expires anywhere from 1 to 3 years out from the current date. This allows for a buy and hold strategy that has a much higher potential payoff than simply buying the stock.This will be the ultimate guide on LEAP options.
Fundamental analysis and careful selection, LEAPs can be a great tool for an investor.
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