Showcase of Options Strategies: Leaps Call Edition!

@Value & Investment @Kong Kong Lang Jun@trend_OptsDaily@Jiu Zhang Ji
The full name of LEAPS Call is Long-Term Equity Anticipation Securities Call, which can be simply understood as a type of call option with a very long expiration time (usually more than 1 year, up to 3 years).

Its core features can be summarized as follows:

• Particularly long duration: This is the main difference between it and ordinary options (which usually expire within a few weeks/months). It gives you more time to wait for the stock price to rise, allowing your investment judgment to have a chance to be verified.

• Leverage high returns with low cost: You only need to pay a small portion of the stock price as an option premium to "control" a corresponding number of shares. If the stock price rises as expected, this leverage effect may bring percentage returns far exceeding those from directly buying stocks. However, conversely, if the stock price does not rise or falls, your loss ratio may also be larger.

The Option Master also had relevant teaching and explanations a long time ago: 《How to Choose Between Leveraged ETFs and LEAPS Calls?

Since this is a collection of community insights and operational details on Leaps, how could we miss the clever strategies of our Longbridge community members? Let's take a look! Like, follow, and bookmark, the collection will continue to update~

@Value & Investment《Summary of Long-Term Option Operations》

Generally, buy options expiring in about one to two years. During this period, if you have just one or two good opportunities, you can make a big profit and exit, similar to my batch-selling strategy summarized over a few days.

Because it is generally difficult for us to estimate the price tomorrow or next week, but the price a year later is likely to be estimated more accurately, this premise is that you understand the underlying asset well and have the right direction.

@Kong Kong Lang Jun 《A Capital Allocation Strategy to Avoid Risks and Improve Capital Efficiency》

The fundamental purpose of me allocating a portion of capital to buy long-term call options is not to add leverage, but to use options to replace the underlying stock!

Regarding the timing to sell after bottom-fishing, my strategy is: sell when the stock price rebounds to its previous high point.

@trend_OptsDaily 《Epic Opportunity Observation for Leaps Calls》 (Timing)

Historical data performance when VIX > 29:

• After the VIX closing price exceeds 29, the S&P 500 averages a 24% increase over the next 12 months.
• In the past 15 years, there have been 265 instances of VIX > 29, and this pattern is quite stable.
• March 2026 VIX Shock: The VIX closing price exceeded 29 three times. The S&P 500 subsequently rebounded from its low on March 30 to May 29, gaining approximately 19.5% in just 3 months.....

@Jiu Zhang Ji 《Option Trading Strategies in Unilateral Markets (Part I): A People's Version of Leaps Calls》;

《Option Trading Strategies in Unilateral Markets (Part II): A People's Version of Leaps Calls》

The less money you have → the shorter the duration you can play → the more fatal time decay becomes → the more it resembles gambling. The limitations of capital restrict the limitations of trading.

Use time to hedge against human nature, greed, and gambling addiction; in unilateral markets, you can also roll positions: After buying 1 Leaps, you don't need to invest more money. If it continues to rise unilaterally, roll 2 into 4, and 4 into 6. Your nominal shareholding rolls from 100 shares all the way to 600 shares.

Continuously updating and collecting.....To better incentivize high-quality content, Longbridge's [Evergreen Plan] is now live! We are still continuously incentivizing content that stands the test of time , among which option practical combat and strategies are also one of our incentive directions. If you also have Leaps Call operation experience and insights, you can submit here~

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