Deep ITM leap call is a way to play 2x/3x

來源: 2025-01-23 07:01:17 [舊帖] [給我悄悄話] 本文已被閱讀:

Take an example of a stock trading at $100.

A: You can buy this stock normally, and if it goes to $150, your gain is 50% on your investment

B: You can buy deep ITM leap call, say, 12 months out call with strike price of $50. In this case, your cost is likely going to be $55-$60. The premiums is therefore only $5-$10. 

    Now, if stock also moves to $150 within 12 month, your leap will be worth at least $100. So, your gain is 80-90%, essentilly twice as much as what you would gain if you were to just buy normal stock