In the money leap call, 比如 nvda 現在價格是140，$80 call is $70 for jan 2016
if nvda drops to $100 at expiration date, your option will probably drop to $20 at expiration date.
so you excercise the option, you buy nvda at $80, 相當於你在$100買了nvda. You lose $5000.
instead of buy the leap call, you purchased 100 shares of nvda at $140。 At Jan 2016, you lose $4000 on paper.
If you plan to hold nvda for a long time, say in the future NVDA go up to $150, the first way you break even.
the second way you make $1000. So the difference is still the $10 premium you paid for the leap call
