"A truly excellent strategies book! Whether you are a novice or an advanced options trader, Thomsett brings you a straight–forward example packed guide that outlines the limitless opportunities the world of LEAPS options can offer the thoughtful investor. A MUST read!"
Marty Kearney, Instructor, CBOE′s Options Institute, author of Understanding Leaps: Using the Most Effective Option Strategies for Maximum Advantage
Unleash the power of Long–Term Equity Anticipation Securities (LEAPS) for increasing gains, limiting losses, and protecting your trading and investment profits. Whether you′ve traded LEAPS before –– or you′re just getting started –– this strategy–oriented guidebook is the place to start. You′ll find 108 powerful strategies –– explained in step–by–step detail. Each is supported by real–world examples, graphic illustrations and clear guidance on when, where and how to apply them. Discover how concepts are transformed into strategies that you can implement easily for a wide range of trading scenarios.
This comprehensive handbook introduces you to the basics of LEAPS trading. From the amazing ability of LEAPS to significantly limit the risk of stock investing to their ability for hedging the market and providing profits in up or down markets –– you′′ll find an approach that works for you now and as your future investing goals change.
Over 108 powerful strategies in all –– including...
- Letting time work for the seller
- Using "covered" LEAPS for long positions –– at the lowest price
- Providing yourself with low–cost –– even NO–cost –– added insurance using LEAPS
- Coverd calls: Ideal for conservative, low risk investing
In addition, you can discover...
- The benefits of Index LEAPS
- Tax rules – and tax advantages – unique to LEAPS
- And, strategy after winning strategy
Now is the time to familiarize yourself with every nuance and need–to–know fact for putting LEAPS to work for you. Find them all in The LEAPS Strategist.
Introduction Exploring a New World of Possibilities 7
Part I Leveraging Your capital: Strategically expanding your investment power 13
Chapter 1 Options as a Specialized Market: A gateway to higher profits 14
Chapter 2 A New Approach: Strategic buying with LEAPS 39
Chapter 3 Worst Case Planning: Strategies for tough times 59
Chapter 4 LEAPS Puts: Betting on the downside 77
Part II Hedging with LEAPS Adding new dimensions 95
Chapter 5 Time Is On Your Side: How time value works for you 96
Chapter 6 The Covered LEAPS Contract: Lowering the cost of going long 111
Chapter 7 Hedging Strategies with LEAPS: Stretching your investment dollar 135
Part III The Covered Call Advantage: Conservative strategies with low risk 155
Chapter 8 Covered Calls: The ultimate profitable approach 156
Chapter 9 Long–Term Covering: Your investment cash cow 183
Chapter 10 Avoiding Exercise: Slim down to stay financially fit 199
Chapter 11 Picking the Right Stock: Profitable strategies for smart investing 217
Part IV Variations: Expanding your profit potential 235
Chapter 12 Downside Protection: Techniques for insuring your profits 236
Chapter 13 Strategic Expansion: Thinking outside the box 249
Chapter 14 Tax Planning: Keeping it simple 261
Chapter 15 Higher Profit Potential: LEAPS in the big picture 269
Index of Strategies 288
General Index 292