If you're starting with $1,000 or even

$50,000, one of the biggest challenges

is figuring out how to use your capital

efficiently without taking on

unnecessary risk. And that's where this

strategy becomes really interesting.

Today, I'm going to be covering a

step-by-step guide on LEAP options and

how I would be using this strategy to

grow to my portfolio level if I were

starting from scratch. Again, I'm going

to be showing you all fundamentals as

well as how to manage, open, and close

the strategy. It's something that many

large investors use to manage exposure,

plan entries, and stay disciplined. But

most retail traders either over

complicate it, misuse it, or avoid it

completely because they don't understand

just how it works. So, in this video,

I'm going to break it down in a simple

way, show you the risks, which is very

important, show you the benefits, and

help you understand when this strategy

makes sense to use and implement within

your portfolio as a growth strategy.

I'll show you how I personally use LEAPS

as a stock replacement strategy as well.

Because LEAPS are actually a really

smart way to have exposure into a stock

without really having to need the

capital to really buy a stock. I'm going

to show you an example later on where a

position might cost 50K if you were

buying stock, but if you buy a LEAP

option, it's only going to cost 10K. So,

it's a huge reduction in terms of

capital cost that you have to put up

whenever you're using LEAP options. And

LEAP options give you control of 100

shares. That's what makes them so

amazing. So, everything is broken down

step by step. So, you can actually apply

this in 10 organized chapters that you

can see on the screen right now. First,

we're going to build the foundation.

What leap options actually are, why

they're different from short-term

options, and why I view them as a stock

replacement strategy. Then, we'll cover

the most important concept in the entire

course, delta, because this is what

determines whether your LEAP option

behaves like a stock position or if it

really behaves more like a risky lottery

ticket. And that's what you definitely

don't want. After that, I'll show you

how to choose the right strike price,

the right expiration, avoid time decay

mistakes, and understand implied

volatility. And lastly, I will show you

how to manage risk properly and real

life examples of leap positions that I'm

opening up in my personal portfolio. My

mentor used to say, "The problem isn't

using leverage, it's understanding it."

And that's exactly why most people lose

money with options. They mishandle

position size, stock selection, delta

decay, and overall strategy risk. Quick

disclaimer before we jump in. This isn't

financial advice. I'm not registered or

licensed, and I'm just breaking this

information down for educational

purposes only. Now, with that out of the

way, here are my personal results of

leap options. I've been running this

strategy for almost a decade now, and

I've had really good results, and I've

also made really big mistakes that I

hope I can help you not make yourself.

So, let's start with the most important

question first. What exactly is a LEAP,

and how do you implement the strategy? A

LEAP is a call option. It benefits when

the stock rises. And back in 2018, my

mentor essentially made money on one

single position. And I thought that was

gambling. I thought I was just taking

crazy risk and that there's just no way

that it can, you know, be something that

another investor can duplicate. But when

he explained it to me, I really

understood that there was strategy

behind his results. So it wasn't really

gambling, but it was strategic

positioning by structuring the trade

correctly and giving it time. He was

using Apple. This was a while ago, so

Apple was really a hot stock. It's still

a really good stock with amazing

returns. And what he did on Apple was

later what I personally implemented with

Tesla in my own portfolio. And if you

guys are new to my channel, my name is

Henry. I worked at Goldman Sachs and I

grew my portfolio to $4 million. And

along the way, I used Tesla. I was using

LEAP options on Tesla. Now Tesla's a

riskier stock and had a lot of

volatility. And a LEAP option greatly

benefits when there is a lot of

volatility, specifically also when

there's a lot of high momentum. So any

momentum driven stock, which a lot of

you guys on YouTube are searching up,

any growth stock, a LEAP strategy can

really give you some magnitude to any

single trade. Now, we'll talk about the

risks as well because there's definitely

risk to LEAP options. So a LEAP is

simply a long-term option contract.

Usually with an expiration from 9 months

all the way to even 2 years out, instead

of buying a 100 shares of a stock,

you're buying the right to control those

shares over a longer period of time. And

this is where it gets really interesting

because if you structure it correctly, a

LEAP can behave very very similar to

just owning stock but with a significant

less capital upfront investment. So for

example, instead of putting up $50,000

into shares, you might control the same

$50,000 with 10 to $15,000 worth of

capital or even $25,000. That's still

good using a LEAP option. That way you

don't have to have as big of a portfolio

to scale if you're starting out as a

beginner or even if you're an

intermediate investor. That's why

institutions use LEAP options, not to

gamble, but to create efficient exposure

while managing capital. So, full

disclaimer, a LEAP uses less capital,

but it's technically more risky if the

stock ends up going down. It's kind of

like a mortgage on a house. You put up a

down payment and you own a much more

expensive asset. If the asset falls, you

lose money very quickly. If it rises,

your small capital rises a lot because

you're controlling this big, massive

asset. That's how you make bicep over

tricep money. That's how you really grow

a portfolio. That's how a more growth

centered investor really thinks about

growing that portfolio. This is why

later in this course, I will show you

how to structure a LEAP option and

manage it. So, a LEAP is a long-term

call option on a stock. This is simple,

but not all LEAPS behave the same way.

So, how does a LEAP act like a stock?

This is really critical. Some LEAPS will

move almost exactly like the stock will,

and others barely move at all, even if

you're right on direction. That

difference comes down to one concept.

It's the most important concept in this

entire strategy. Delta. So before we

talk about strikes, expirations, or

anything else, you need to understand

how your position actually reacts when

the stock moves. Delta is exactly what

determines that. Think of it like this.

If a LEAP has a 0.8 delta or 80 delta,

it will move 80 cents for every $1 move

in the stock. So instead of owning 100

shares, you're essentially getting the

behavior of 80 shares. That's why some

leaps feel so powerful. They actually

move like the stock would move because

they have 80% of that movement, but the

cost could be half 1/4 depending on what

you pay for the premium. And other LEAP

options may feel really slow because

their delta is just too low. And we'll

talk about the mistakes of really low

delta and out-of-the-oney options. Now,

this is where most beginners go wrong.

They will buy cheaper out- of-the- money

leaps thinking that they're getting more

leverage. But in reality, those

contracts have very low delta. So even

if the stock does move in their favor,

the option has little to no change. Out

of the money options usually expire

worthless. So buying them is dangerous

because options expire out of money.

You're able to lose all the capital that

you pay in terms of premium to buy that

option. On the other hand, deeper in the

money leaps have higher delta, which

means they behave much closer to how the

stock would itself, giving you more

consistent exposure. In fact, once you

finish this course, you may not really

want to buy stocks anymore at all. Let's

go over a real example using SoFi stock

and Netflix stock, and I'm going to

display to you what deep inthe-money

LEAP options look like versus out ofthe-

money options. All right, so the

position that I want to go over right

now and show you what an in the money

option looks like. We're actually going

to use AMD and then I'll cover SoFi and

Netflix as well. But AMD is a current

position that I have a LEAP option on.

It's a $200 call option on AMD and I

ended up buying this in January. So I

was having a program that I was running

and I told my students that this is a

position that we're going to get into.

This was on January 5th. Now the option

that you see on the screen right now

expires on September 18th. So, when I

opened this option, it was roughly a

9-month to expiry option. Now,

technically, a LEAP option is a one-year

option. However, I consider a 9-month

option a LEAP option as well because it

basically functions very similar to what

a LEAP option would. It gives you that

long-term exposure. It gives you that

capital efficiency, and there's plenty

of time before theta really kicks in.

Theta is what hurts the option. It's as

time goes on, the option decays in

value, and that's what is known as

theta. So, this option right here, the

AMD 200 call option that I'm up $11,000

on is in the money. It's actually deep

in the money. The reason why it's deep

in the money is because the current

value of AMD, as I'm making this video,

is $356 per share. If you're watching

this video in the future, that's

perfectly fine. I just want to give you

the education tools that you can use for

your own portfolio, even way into the

future, so you can just improve your

investing skills and just learn from me.

Now, AMD, $356 per share. This strike

price on AMD is $200. So, I'm in the

money by over $150. Now, if we scroll

down here, I want to show you what the

delta is. The delta here is 94.

Extremely extremely high delta. Now,

this delta is already so high that

basically whenever AMD goes up a dollar,

my leap option goes up by 94. So, if AMD

were to go from 357 to say 367, up $10,

then my option would go up $9.50

basically. So, very, very similar

movement. However, keep in mind if you

own 100 shares of AMD, that's $356

per share. That means that you have to

have $35,600

to own 100 shares. So, if it goes up

$10, you can see on the screen right

now, $10 divided by $356, that's the

return, right? So, if AMD goes up about

$10 exactly, then that performance is

roughly 3%. Right? However, if AMD leap

option that you purchase goes up by

$9.50, now let's do the math for the

LEAP option. $9.50

increase now is going to be divided by

the cost of the LEAP. Now, the cost of

the LEAP is only $164, which means that

the capital required is $16,000. So,

instead of having to pay $35,600,

you only have to purchase the LEAP

option in this example for $16,000. So,

when AMD stock goes up by 10 bucks, this

leap option gains $9.50. Dividing $9.50

50 by $16,400

you get this return. So this return that

we get from the LEAP option is greater

than as a percentage return versus the

stock itself. And again the reason is

because there's leverage. A LEAP option

does not need to use the same amount of

capital. Now this is a really deep in

the money leap option. Let's go over

another example. I'm going to show you

an example on SoFi and we're going to

look at a SoFi leap option. So, SoFi is

down a lot over the last 3 months. It's

down 27%. Years to date is down 38%. Um,

so let's just say that we want to bet on

SoFi to recover. So, so you can go to

trade trade options. And now what we're

going to look for is an in the money,

deep in the money to be specific option

that is a LEAP. So, we're going to go

out to a future expiry. And again, 9

months is okay. One year is really, you

know, what a LEAP option is. So I'm

going to go for June 17, 2027 as an

expiry date. Now if I go to buy call

option, what I want to look for is a

delta that's around.7. That is a sweet

spot delta that you want to use whenever

you're buying a LEAP option. The reason

is because whenever you look at a LEAP

option that has an extremely high delta,

that LEAP option is going to be really

expensive. So for example, if I go down

to the 10 call option, this delta is86,

but you're kind of getting diminishing

returns here because you are now paying

$8 to buy this LEAP option. However, the

15 call option is only going to cost you

$5. So, it's a lot cheaper compared to

just buying super deep in the money call

options. So, here is kind of like the

sweet spot because it's still in the

money. It's 70 delta and you have a lot

of good exposure without having to

really overpay. So, here if I go into

this 15 call option and I click it, you

will see that there is a bid of $5.20

and an ask of $5.30. The delta is 70.

And if I were to buy this option,

essentially what would happen is that

the 15 call option is going to cost $5.

That means I get to control 100 shares

for just $5. This $5 helps me control

basically $1,600 worth of SoFi because

100 shares would be $1,600. So if I

click this option right here, my break

even price is $20.25.

Now, keep in mind this means that if I

were to hold this option until expiry

that I would need SoFi to be $20.25 25

cents just to break even. However, as we

will cover later on in this course, it's

very important to actually not hold a

LEAP option up until expiry. The reason

is because in the last month two or

three, Theta really starts to kick in

and eat away at your options value. So,

in a majority of situations, I do not

hold my LEAPS up until expiry, but we'll

talk about that later. The whole point

here is a deep in the money option like

this one that we're looking on the

screen right now, a 15 call option

that's worth $5. This is basically an

optimal setup for a LEAP option. if you

think the stock can recover. So let's

say that SoFi can go to $25 per share

by, you know, June or a little bit

before then, let's say March 2027. So as

it approaches 25 or $30 per share, this

LEAP option is going to gain value. If

SoFi stands the same, then at first

nothing is really going to happen

because a LEAP option has very low time

decay, meaning that doesn't really lose

that much value at first. So there is a

lot of benefit to a leap option because

you have time to hold this leap option

and see if your thesis on the underlying

stock is going to play out or not. If it

doesn't play out in the first, you know,

few months, then you can end up just

cutting the position for very minimal

losses. Okay, we'll talk a lot more

about this later on after I cover more

details on the leap strategy. But that's

SoFi. Let's go into Netflix. Netflix is

also, you know, a pretty interesting

stock, but you know, this course is not

about specific stocks. It's more around

how to use this strategy. You know, I

used to work at Goldman Sachs. I've

scaled my portfolio and I've learned a

lot of things along the way. I made a

lot of mistakes and leap options are

definitely one of those more powerful

strategies which if you do them

incorrectly, you can lose a ton of

money. But if you do them correctly, it

is a, you know, interesting way to scale

a portfolio. And in my experience, it

has been very fruitful for me as well as

my community and my students. Now,

Netflix is currently trading for $93 per

share. You can see how Netflix was like

$108 not that long ago. And in the

one-year chart, Netflix has had, you

know, a good amount of volatility. So,

let's just say Netflix or whatever stock

you think is going to come back to, you

know, a more recent 52- week high or

peak level. So, you know, for Netflix is

133. So, then you can also do a deep in

the money option, right? That's the

whole point of this course. However, let

me show you what can go wrong if you do

an out-of-the-oney option. Okay? So,

again, keep in mind Netflix going to

133. Keep that number in mind. Okay?

133. Okay? I want to show you how buying

an out- of-the- money option can still

be unsuccessful even if the stock goes

up back to like some big level. Right?

So 133 would be really really nice.

That's a really huge increase in

Netflix, right? From 93 to like 133.

That's basically like 40%. If I'm

correct, right? So whatever I'm going to

put that math on the screen right now.

That's a huge return that is very

unlikely to happen in a especially in a

short amount of time. Right? Stocks

don't usually rise that much in a short

amount of time. But let's just say that

our belief is that that can happen.

Okay? So, I'm going to show you how even

if something really good happens, you

can still lose money on a leap option if

you don't set up correctly. Let's go to

trade options and then let's go for

let's just do the same June 17, 2027 now

again. So, let's say that we're going to

buy an out- of the money option and

we're going to go to 130. Okay? So,

we're going to bet on 130. The delta

here is 28, which is, by the way, not

too terrible. 28 delta means there's a

28% chance of this option expiring in

the money. So if it, you know, goes to

130, that's basically almost a 30%

chance of happening. 28% chance to be

exact. However, look, our break even is

135. So even if Netflix goes to $33 per

share, which again is, you know, a

massive return that's not that likely to

happen in majority of cases, right?

Let's not speak about this specific

case. Broadly speaking, a stock won't

make that huge of a rise on a consistent

basis, right? Otherwise, investing would

be too easy. Hey, it's not too easy,

right? It takes a lot of dedication,

skill, and stock market returns are

typically 10%. So, if you can get 20,

30% per year, you are beating the

average investor by a whole lot. You're

definitely beating the S&P 500 by a

whole lot. And most investors just don't

do that. And the biggest mistake is just

buying out of the money call options.

So, thinking that this is cheaper and

yeah, it's a lot cheaper to buy a 130

call. It's $5.60, right? Versus if you

were to buy a deep in the money option.

So, that would be like the 85 strike

price here, right? Delta 70. However,

the cost is like four times more. It's

$22.50. That's a lot more expensive. But

this is like night and day in terms of

like the performance that the LEAP

option kind of gives an investor as a

stock rises. You know, as a stock goes

up a dollar, this call option right here

benefits by.7 versus the other one that

we're like looking at right now, the 130

only benefits by 28. Now, as a

percentage return, that's pretty big.

But the decay is going to be just so

massive here. So, let's look at the

decay, theta decay. So the Greeks on the

bottom, these are important uh variables

and they basically explain how the

behavior of an option really works. So

delta is how much the option changes.

But there's another definition of delta

which I just mentioned. It's basically

the chances that the option will expire

in the money meaning like how likely is

it to get to that level at all like just

to be at that level. So that's delta and

it's really important. We'll mention

more about this as I go through more

examples but theta here is 0.0168 0168,

which basically since each option is 100

shares, this means that this option is

losing $1.68 per day. Doesn't seem like

a lot, right? But, you know, it's kind

of a lot considering that this option

has such a long time to expire and it's

already losing that much per day and the

value of the LEAP is only five bucks.

So, as a percentage return, you're

losing a lot on this 130. However, if I

go down to 85, I want to show you kind

of the difference here. So, the

difference here is that you are losing

$2.13.

However, the amount that you have to put

up for this leap is so different. It's

four times more expensive. So, you're

losing just a little bit more dollars,

but as a percentage return, as a

percentage of loss, it's very, very low.

So, although it's a little bit bigger,

in terms of overall efficiency, it is

way way better in terms of overall

efficiency. Also keep in mind whenever

you buy a deep in the money option, it

already has some intrinsic value. We'll

talk about intrinsic value. I'm giving

you guys a lot within this one example,

but I'll I'll give you more information

on why an in the money option also has

other advantages. So let's talk about

intrinsic value. Intrinsic value is the

real value an option has right now. So

as I just showed you in that example, an

85 call option or LEAP option on Netflix

already has value today. The reason why

it has value right now is because

Netflix is sitting at 93 and that call

option is at 85. So the value

intrinsically is already $8. If nothing

happens, it's 8 bucks. Whereas the other

option that's at 130, which is out of

the money, has absolutely no intrinsic

value at all. It's not worth anything.

The only reason it's even worth the

$5.30 that we saw is because it has

something called exttrinsic value.

Right? Intrinsic value is how much this

option is in the money right this

second. Extrinsic value on the other

hand is everything else. Time value,

expectations in the future, and

volatility. This is the part of the

option that decays over time. It's not

intrinsic value that decays because it's

intrinsically worth something. So that's

not really decaying. What's decaying is

all that time, all the possibilities,

all the, you know, potential that is

decaying. As the option approaches

expiration, if it's not moving towards

the strike price or if it's not moving

higher, all that time value, it's going

to decay and be less valuable. For

example, if we look at a really awesome

stock that I personally like, Nvidia,

and let's say it's at $200 per share,

which that's roughly the price. If you

were to guess kind of in the next 6

months, where could Nvidia be? You know,

220, 240, 250, those would be, you know,

guesses, right? And that is basically

one factor of time, 6 months. However,

what if I said in 10 years from now,

where could Nvidia be? Right? There's a

whole lot more possibility. What can

happen in 10 years? uh you know,

autonomous robots and all kinds of other

inventions and technologies and AI

continuing to just grow to the point

where none of us have to work

potentially and just whatever. There's

lots of crazy things that can happen in

10 years, right? So the value of Nvidia

might be 500, 1,000. It's possible. It's

possible because there's so much more

time that time is a really huge

variable. That time variable really

makes up all that exttrinsic value that

you know options have. So this is the

key insight. The more intrinsic value

your LEAP has, the more it behaves like

stock, the more exttrinsic value it has,

the more it behaves like a trade that

needs to be right quickly. If it's not

right quickly within that time frame,

you have a huge risk. Maybe you will

lose all the money that you put up for

that option position. So, one has value

now and the other only has opportunity

to become valuable in the future if the

stock rises. Now, if you're right about

a rise in a quick short amount of time,

then yes, you can make a bunch of money

on out of the money options. However,

that's not my style. That's not what I

teach, and that's not how I personally

became successful. I became successful

by strategically looking at in the money

options and trying to basically use it

as a strategy to replace stock. That's

why in this strategy, we typically favor

a deep in the money leap as it has more

capital requirement, but it behaves much

more similar to a stock. And as I show

you later, it's also much easier to

manage that type of position versus an

out- of-the- money option. Now, because

you're minimizing decay and maximizing

the value that you already have, that's

also going to help you a lot in terms of

draw down risk. Because what happens is

if the stock goes down, leap options

lose value. The LEAP options out of the

money, there's no value that even had

intrinsically. So, you just lose

everything. However, with an in the

money option, if it goes down to a

certain level, you can just place a

stop-loss order and you you can end up

losing but recouping about half of the

loss, for example. So, later on this

course, I'll show you kind of how to

manage that type of situation because it

is case by case. There's a lot of risk

involved with LEAPS. But overall, in a

bullish market, which is most of the

time we are in a bullish market,

especially over longer periods of time,

the LEAP strategy can outperform

significantly. Now, let's move over to

the third chapter of this course, which

is going to be contract selection. This

is where a lot of investors fail. The

best setup in my opinion is an

expiration selection of 9 months to 18

months. 2 years is a kind of a long time

period. 9 months is a level where you

have enough time and it's not too short

where time decay is really kind of

eating away at your option. Technically,

again, a leap is a one-year option, but

I consider 9 months close enough because

theta and time decay does not eat into

the option at that point. So, that's the

time frame for expiration. Now, let's

discuss strike selection. I personally

love 70 delta which is a deep in the

money leap option. Deep in the money

options are safer because most of what

you're buying is real value not hope.

Deep in the money equals mostly

intrinsic value. Now it doesn't have to

be massive intrinsic value as long as it

has some value and a high delta because

that's the formula for stock

replacement. A lot of investors they're

you know buying shares doing covered

calls and they're doing more capital

intensive strategies. Now, it's fine if

you have a big portfolio, but if you are

someone that has a smaller portfolio or

a medium portfolio and you're looking

for growth, well, something like the

wheel strategy or covered calls and

selling puts, they're good strategies,

but they're definitely not the type of

strategy, you really get that massive

growth in place. So, this is how you get

the upside in close movement to a

strategy like owning just regular stock.

But with the LEAP option where you have

to put up a lot less capital. Now, the

only thing that can really like destroy

your returns is data. data only destroys

exttrinsic value as we discussed not

intrinsic value. So, as time goes on,

your option controls 100 shares and it's

really not decaying in value very much,

especially in the first few months. But

as we approach the later 3 months,

that's where the option can really decay

in value, especially if it's not really

that much in the money, right? The

example that I showed you on Netflix

where I do an 85 call option and Netflix

is at 93. That's $8 in value. That's

good. That's in the money. But it's not

like AMD which I have a 200 call option

and AMD is at 350 360. That's a very

different position because one has

intrinsic value of 8 bucks. Another one

has $150 worth of intrinsic value. So of

course the higher intrinsic value that

you have basically the safer you are to

stay within that zone. Now deep in the

money leaps don't need the stock to move

fast like a really risky short-term call

option would. They have a long

expiration. So you really get to have

the stock-like return. Let's go over

another example of a LEAP option that I

currently have in my portfolio. This is

going to be on Meta. Meta recently had

earnings. The stock went down, and my

current LEAP option is actually a $600

call option that expires on January in

2027. Now, this option is still in the

money, but it did lose a lot of value.

You can see here how I am down

personally $4,000 on this position. I'm

down 31%. Yet, before earnings, this

company was doing really well, but met a

dropped after earnings. And that's fine.

earnings can sometimes drop companies.

So, this leap option looks a lot less

attractive after Meta ended up falling.

In fact, you can see here the value of

my LEAP option, how much it actually

dropped. I should have actually cut this

position and I should have taken profit.

This is probably a mistake on my end

because Meta, the $600 call option was

worth $133, even $140, you know, $140.

So this position which you can see here

I ended up buying let's see meta break

even price current Meta price market

value current price average cost. So I

have it at an average cost of actually

131. So I paid pretty handsomely for it.

However you can see that the value was

at 140. And this was you know not that

high of a return. Let's go to the one

month here. The value was basically as

high as 148. So I haven't really had a

chance to even make a decent profit on

this position. I wouldn't really take

profit off of a position that I bought

for 130 and now it's at 148. That's just

not enough. My typical exit point, what

I like to set is about 50%. So if I buy

a LEAP option for 130 and now it's

worth, you know, 50% more, which would

be about $65, which would be $195 total,

that's a good exit point. That is a

point that I would want to take an exit.

Um, so this option was very deep in the

money. Now the delta is 62, which is

pretty good still. 70 is really the

sweet spot. So 62 is kind of on the

lower end. However, the lower end is

still not an issue. I'm still in the

money on this LEAP option. And because

this sleep option expires in January

2027, I still have a lot of time. Theta

is really low on this option. And I want

to click simulate my return because uh

now I can show you kind of different

situations, situational um scenarios

that can happen to this leap option and

when I would, you know, take profit,

when I would look at delta. So first of

all, delta is at 62 right now. Again,

that means if Meta stock goes up by a

dollar, this option goes up by 62. So

here's kind of some scenario analysis.

What would I do? Well, right now Meta is

at $612. Pretty low in terms of

performance. However, let's say that in

next earnings quarter, which is 3

months, right? From now until then, not

a whole lot happens, but you know, it

inches closer to 650. So, you can see

here as I change the price, then my

simulated return here would continue to

increase in value, right? I'm losing 4K

and now I would only be losing um, you

know, a lot less. So, let's go to 650.

Let's actually enter the price to make

it a little faster. No, let's actually

swipe here. I don't know how to enter

the price. So, let's go to 650. Okay,

here we go. About 6 650, right? So, I'd

still be down on this position just

because, you know, I bought it for an

expensive price. So, this was this is an

example of me managing this position to

my best ability. Met is down, but I'm

still bullish. So, that's why I'm not

cutting this position. Theoretically, a

lot of people would, you know, think

about getting out. However, if the

underlying stock is still good, then you

can continue to hold your LEAP option in

place. There's no reason to change a

LEAP option just because a stock is not

going in your direction within a short

amount of time. Again, a leap option is

has time. That is one of the benefits of

a LEAP option. So, in terms of managing

this type of strategy, you don't have to

be too strict in day-to-day stuff. You

don't have to do that. This is much more

of a kind of wait andsee strategy. As

long as the stock ends up moving in your

direction, your thesis ends up playing

out at some point before expiry, then

you can you can have a profit. So, for

example, let me show you. All right. So,

let's say now that Meta ends up shooting

to $700 per share. Okay? You can see

this graph is going to continue to

change. You see how it goes up. So today

if it went up to $700 per share suddenly

this fast then I would be up right but

obviously that's really difficult to do.

However I want you to pay attention to

this chart because is if it went up to

700 even by you know July I would still

be up on this position. So on July 9th

if you know Meta went up to $700 I'd be

up on the position. However let's say

that earnings came in really really good

and Meta jumps to like $800 per share

right? So let's go to 800. I'm going to

scroll here. I apologize. Trying to be

as efficient as possible here. I really

respect your guys' time. Hey, let's just

say 780. Okay. As time goes on, this

value would still decrease, right?

Because all this value right here is

still some exttrinsic value. Some of it

is time. But now at expiry, I don't

really have to worry cuz I'm so deep in

the money. But I wouldn't hold it

because you see here, if it stays at

780, it just continues to decay very,

very quickly. At this point, the slope

is very kind of steep here. However,

here it's not so steep. It's losing

value, but very very slightly. So 3

months from, you know, today we're

somewhere in May. So June, July, August.

So in August, which is where I'm at,

funny enough, August 12th, if it hits

780, I'm going to be out of this

position. I'll take 6,900 for sure in

terms of a gain, and I'll be happy with

that. So you know, it it is very

situational. The exit points that you

want to aim for is typically 30, 50, 75.

A lot of it is also based off a

technical analysis, which I'll show you

later, but I'll give you a quick summary

to give you as much value as quickly as

possible. If the stock is going up and

the RSI is not above 70, then there's a

good chance that the stock's momentum

can continue. If the RSI is very high,

that's typically more resistance. That's

one of the indicators I look for in

terms of shorter term momentum. I'm not

a momentum trader. I'm not a short-term

trader, but it is a factor that I take

into consideration. The other factor is

Ballinger band. If the stock goes

towards the top of its bowlinger band,

that's also an interesting time to

really consider taking profit from your

LEAP option. We'll go over Bowlinger

band a little bit later. Now let's talk

about another important factor within

this course. In addition to strike and

expiration selection, it's very

important to select the right stock. Of

course, this changes with time in the

market. If you select the wrong stock,

nothing can help you. No strategy is

going to help you if the stock declines

because a LEAP option is a bullish

strategy. If you select a very good

stock, then you can even have some

leeway room on not choosing the best

delta because if the stock goes up,

pretty much a majority of LEAP options

will be benefiting. Even out of the

money leap options will have a

shorterterm benefit if the stock ends up

going upwards. Now, of course, stock

selection really changes with the course

of time as well as market conditions. If

you want trades on LEAPS that I

personally hand select and research,

then you can see my new leaps mastery

group that I launched only for this

specific video for those that are still

watching at this point in the video. You

can check out the description for more

details. This is basically like treasure

because I do not have this group in any

other video on YouTube. only in this

one. I'll talk about that more. Let's

get back into more valuepacked

information. Let's cover some more

common mistakes to make sure that you're

not falling into dangerous habits and so

you also understand more advanced topics

within contract selection. Now, one of

the biggest mistakes is just not buying

enough time. Again, having that

short-term tendency, having that

gamblers mindset, having that really,

you know, I want to get rich quick type

of mentality. That is the wrong

mentality. That's not the type of person

that I personally want to work with. And

I don't believe that, you know, getting

rich quick is even possible. It's really

difficult unless you get lucky. Now,

what I'm trying to do is I'm trying to

replicate success without getting lucky.

So, when I see a lot of traders that go

3 to 6 months and, you know, they're

trying to save money and ends up biting

them in the, you know, you knowhere,

right? So, that's not a leap option.

That is just a short-term riskier trade.

That's a trade that needs to be right

quickly. Now, time is what gives you

margin for error. When you have more

time, you have a greater margin of

error. Without enough time, even a good

idea, it may lose money. Even some of

the best stocks, they don't always have

the best short-term windows of good

performance within one or two or 3

months. But many good companies that

report good earnings, have solid

momentum, have good, you know, investors

that have a, you know, cultlike

following to that stock. They believe in

that stock, management continues to

guide forward, companies doing good

things, then more likely that stock is

going to go up. But it may need more of

a time. But it may need 6 months, 9

months or one and a half years, right?

And a leap option gives you that

advantage. Now the other mistake that I

see is really around events and timing.

Buying leaps during hype times or you

know really tough political news or

right before earnings can really have

inflated prices. Even if the stock goes

up, volatility can drop and cancel out

all of your gains. So you can be right

on direction, but you can still lose

money. That's a very frustrating mistake

to make. The other mistake is position

sizing. just having way too much in one

single position. That's what I call bad

risk management. Leaps use less capital

upfront, which can lead to oversized

positions. Despite being long-term, they

still involve leverage and risk. If a

stock does not move higher, the leap can

lose money. Large positions increase

downside impact if the stock declines.

Now, holding too long is the other

mistake that I see happening like

literally all the time. A lot of

investors has become so married to their

position that they forget that there

could be a fundamental change in the

company or just simply time to take

profit and they end up getting way too

greedy. And we will talk about holding

period and managing strategy again when

I go over my live example. Here's a

quick summary if you made it this far. I

want you to just have a full deep

understanding before we move into the

next chapter. Time TK accelerates as

expiration approaches. In the final

months, the option becomes more

sensitive to time. Managing or exiting

before that phase helps preserve value.

Last, buying cheap out- of- the money

leap options is, you know, attractive

for a new investor. They think there's a

ton of money to be made. But a lot of

people go for the cheap contracts

thinking they're going to be, you know,

getting a lot of leverage, but what ends

up happening is most options just expire

worthless. So these investors just end

up losing money. So these contracts

usually just have low delta and are made

up almost entirely of extrinsic value of

possibilities, what may happen, but no

real intrinsic value. That means if the

stock moves in the right direction, the

option really barely responds or even if

it goes up as expiration approaches, it

ends up still being out of the money.

Cheap contracts often come with low

probability and super high risk that

isn't worth it in my experience. Even if

the stock moves up, you end up losing

money. Exactly like the example that I

showed you on Netflix. If you buy a $130

call option, and that's basically where

the worst case scenario can come in. You

end up losing everything that you paid

for the option. Now, my goal is to teach

and educate you so you have proper

position sizing. you don't risk too much

on any one single position and that

leaps end up being a powerful strategy

for you to use on ideas that you already

like within the stock market. So my

final rule set is go for delta that's

around 70 or you know up to 80 time

frame between 9 to 12 months as really

that sweet spot time frame strong

underlying stocks that you really like

and that you want to own and then the

goal is to exit the trade before it gets

into the final 60 to 90 days where theta

starts kicking in a lot more. All right,

let's get into the fourth chapter, which

is theta and time decay. In this

chapter, I'm going to show you how to

manage a leap position that you are

already in. Leaps decay slowly in the

beginning, but that decay accelerates

towards the end. When you buy a

longdated option, you are buying a large

amount of time and that time doesn't

lose value evenly. It does not happen in

a linear process. Early in the life of a

leap, the time value is spread out over

many months. In that early phase, it

could decay maybe, you know, let's say

in the first 30% of time, it may only

decay 10% of the value. In the last 30%

of time, it may decay 50 or 60% of the

value. So, there's a skewed amount of

value that a LEAP option loses with more

of it on the back end. So, each day that

passes, that only removes a small

portion of the value at first. Think of

it like this. Losing one day out of 400

days is almost nothing, but losing one

day out of 30 days matters a lot more.

That's why LEAPS feel stable early on.

There's simply too much time left for

decay to have a meaningful impact

day-to-day. And that's where a LEAP

option is really the most powerful. And

as it approaches towards expiration,

that's when you should be taking profit

or just cutting the position for a loss

if it's down. My management plan is to

evaluate the option at the halfway mark

and make a decision at the 6-month mark

to either, you know, cut the position

for a gain, give up on the position, or

to actually even double down on the

position. The six-month mark is a really

awesome time to basically make a

decision because it's the halfway mark

and this is where a lot of the time

decay actually starts to shift. At that

point, you're removing a large portion

of uncertainty if you end up getting out

of the position. However, if you

continue to stay in the position and

momentum continues to go in your favor,

that's a great time to continue to

profit as well. You really want to take

guessing out of the equation when you're

looking at managing the strategy. You

want to take guesswork out of it. You

want to understand the direction. And

again, that is going to come down to

momentum factors, RSI, Bowlinger band,

and more technical indicators that I'm

about to go into. Chapter five, implied

volatility. This is really the hidden

edge. Applied volatility determines how

expensive your option is independent of

the stock price. When volatility is

high, options are priced higher. When

volatility is low, options are cheaper.

There are two factors. IV expansion.

This is basically when there is an

increase in the option value because IV

is going up. Or IV contraction, where

there is a decrease in option values. If

you buy a LEAP during low volatility and

it expands, you benefit from both the

stock movement and the pricing of the

stock going up in terms of the option

value being more valuable since there's

higher implied volatility. More risk.

Higher risk means higher pricing. If you

buy during high volatility and it

contracts, it can reduce or offset your

gains. This is where many traders make a

mistake. They buy leaps when there's a

lot of volatility and it's already

elevated. So often during hype, strong

rallies or major events, they end up

overpaying. They're buying LEAP options

because they're excited. They're, you

know, have so much enthusiasm because

the market's doing good and they feel

richer. But that's not a good time

because when volatility is high, options

are expensive. Now, earnings are the

clearest example. Before earnings,

volatility increases due to uncertainty.

After earnings, that uncertainty is

removed and volatility ends up dropping.

This drop is known as IV crush. Even if

the stock moves in the right direction,

that contraction can limit gains or

create losses. For LEAPS, this matters

less than short-term options because

this factor within the Greeks doesn't

affect it as much. What really affects a

LEAP option is the stock movement

itself, which again goes back to the

point, it is a good stock replacement

strategy because the LEAP option isn't

affected too much by outside factors

because you're holding a large position

over time. Paying too much upfront

though can reduce or even kill your

overall return. The best situation for

an option trader is what I will call

double tailwind. If you own an asset

like a LEAP option which benefits from

upside growth in the stock, a double

tailwind is when you have a rise in the

stock market pushing the value of your

LEAP option higher and an increase in

volatility which also raises the options

premium at the same time. This powerful

combo explodes the value of a LEAP

option. This is because you have an

increase in value from an appreciating

market and greater volatility also makes

the option more valuable. Chapter six,

risk management. This is what really

separates a beginner investor who makes

a ton of mistakes from a more seasoned

investor who really understands how to

limit their downside risk. Most people

focus on finding the right stocks. But

what actually determines your outcome is

how you manage each and every position

that you hold. All right, guys. Let's go

over the simple risk management guide

within this leaps strategy course. So, I

want to give you the most powerful

techniques that have helped me manage

leap options and also protect myself

because risk management is incredibly

important. Most traders focus on

returns, but professionals really focus

on risk. And you can survive being

wrong, but you cannot survive blowing up

your entire account, right? We can be

wrong. We're not going to have a 100%

win rate. That's just not possible. So,

the goal is not to always maximize

gains. The goal is actually to maximize

longevity. So, if you can do leap

options on a long-term basis throughout

the years, then you have a very good

chance of building long-term wealth.

However, if you end up blowing up your

account, you end up kind of quitting

this game, then you're you're a loser,

right? So, my goal here is to help you

have longevity in trading options. I

want you to be able to do this for the

next many years and decades into your

retirement, right? And the way to do

that is really to protect your downside,

to manage risk. And a great trader with

poor risk management, even he will lose,

right? I'm telling you, even the

smartest people in the whole world with

fancy degrees from MIT and Harvard,

Stanford, etc., even if they don't

manage risk properly, they will end up

losing. So, I really want to put you in

the mindset that everything that I cover

in this course is very important, but

risk management is incredibly important

because risk management is what allows

compounding to really work, right?

Warren Buffett says, "Rule number one,

don't lose money." And rule number two

is follow rule number one. So, I really

want you to understand that risk

management is what allows compounding to

work. and one bad decision can erase

literally years of gains. Every position

should have a plan before it's entered.

Right? So, let's go back here to the

Amazon example that I did before. Okay,

I have the 225 leap option here open.

And if Amazon continues to go down here,

then I need to make a risk management

decision to potentially cut this. So, if

Amazon goes below 225, very simply, that

is a point where I would cut this for a

loss, right? because I don't want it to

go to being an in the money option with

a delta.7 to becoming an out- of-the-

money option with a delta under 50.

That's one of the most important risk

management principles that I personally

use is if it goes to an out ofthe- money

option from clearly leaps being in the

money the way that I do them and it

becomes out of the money then hey I'm

looking to kind of get out here because

I want compounding to work. I don't want

to lose money on a consistent basis. I

want to make money on a consistent basis

and every position that I enter has a

strategy when I enter it. And one of the

most important strategies that I have is

that the option becomes an out-of-the

money option. Then, hey, I'm going to

cut the option before it loses anymore.

Never enter a trade without knowing what

your exit point is. Okay? Because if the

stock breaks down, which inevitably it

will, often times stocks do break down,

crashes do occur in the market, you want

to have proper position sizing. So,

let's talk about position sizing.

Position sizing really matters and it

matters as much as stock selection. Even

the best stocks can become a terrible

investment if your position is just too

large. Let's kind of go over an example

here. Let's say you're investor A. We're

going to talk about investor A here. And

let's say that you have a $100,000

account and you end up putting $8,000 in

one LEAP position. That's already 8% of

your portfolio. And that's not crazy. I

think up to 10% is okay, but 8% is not

little. So, if it falls down by 50%,

then you end up losing 4% of your entire

account. The much better situation that

you can be is becoming investor B. So,

let's say you have a $100,000 account

and you end up buying one LEAP option

for $2,000. Now, if it falls by 50%,

you're down $1,000. You cut your

position. That's still good because you

only lost 1% of your total account

value. Okay? So, I want you to

understand to never marry a stock. Great

companies can still be bad investments.

Stocks do not know that you own them.

Okay? They can come crashing down. Even

good companies come crashing down. So, I

don't I don't want you to fall in love

with the wrong position. Okay? Respect

price action. Really respect price

action. That's something that I learned

at Goldman Sachs when I was working

there. I would see investors very high

net worth wealthy investors falling in

love with stocks and not really

respecting price action and their large

portfolios would lose millions of

dollars. So I really want you to

understand and respect changes in price

but I also want you to understand

changes in fundamentals. Fundamentals is

also very core to your thesis. If you

want to learn fundamentals that is a

very difficult topic and it depends on

each individual position that you have

because you can't always compare

something like McDonald's to Amazon.

These are two very different companies.

So, you're going to want to understand

if the PE ratio of McDonald's at 23

makes sense to something that has a much

higher PE ratio but is higher growth.

Maybe that's Amazon or Navitas or some

other AI stock. You want to compare

apples to apples, which is very

difficult to do when it's different

industries. This is another reason I

recommend that you join me in my Discord

community because it is very difficult

to analyze a single stock. If you do the

wrong analysis on stock selection, even

risk management will be very difficult

to save you because if a stock goes

down, obviously the LEAP option doesn't

do well either. So, respect price

action, respect fundamentals, respect

support levels. If a stock goes below

support and it breaks down, then it's

also a good time to really practice safe

risk management and get out of the leap

option. Now, something else that's

really important is delta management.

Okay, delta measures the stock's

exposure. Delta changes as the stock

moves. Okay, so if I go back here to

let's go to Chipotle. Let's get rid of

this $35 call option that we're going

over example before. Let's just look at

30. Okay, let's look at the delta here

of the 30. So the delta is 6, which is

going to be a little bit lower than the

typical 7 that I like. Now check this

out. The delta is 6. So delta measures

the stock's exposure. Delta changes as

the stock moves. So if Chipotle goes up,

delta is going to increase. If the stock

goes down, the delta will decrease.

Winning positions often become larger

risks because they grow in delta. So the

higher delta you have, technically you

have higher exposure. And if the stock

ends up coming down, you will lose money

faster because of a higher delta. So

monitor delta continuously as you get

into higher deltas, it's also good to

cut part of the position and take profit

on the position because if you have 10

contracts here of Chipotle, okay, let's

say you have 10 contracts, right? So 10

contracts times 6 delta, you essentially

have like 600 shares worth of exposure.

The reason I'm getting at that is

because 10 contracts times six is six

contracts and six contracts controls 600

shares, right? But check it out. If

Chipotle goes up and the price

increases, now the delta becomes higher

and the delta is now 7 or 08. You

effectively don't have 600 shares. Now

you effectively have 700 or 800 shares.

So you can take some off the table. If

you have 10 contracts and you end up

making money and the position is up, you

can cut part of the position. So if you

have 10 contracts, cut part of it, cut

two contracts. Now you have eight total

contracts instead of 10 and now you have

taken profit and realize the gain and

also reduce your overall risk. Okay? And

that's what I mean by managing delta.

Make sure that your delta is stable. If

it's increasing, then you can cut the

position and take profit from the

position. Now something that I also like

to do is I don't want the delta to

become 50. Okay? Because at 50 it's an

at the money option. Okay? and I don't

want a option to become out of the money

and 50 delta is essentially when it

becomes an out ofthe- money option and

that's when I would practice risk

management essentially cut the position

for a loss it's okay to cut positions

for a loss ideally of course we take

profits and if good things happen we

follow technical analysis and the stock

ends up coming up and markets do

typically rise so if we have high

quality companies especially the type of

companies that I'm picking my Discord

community I'm very good at picking which

stock is likely to rise and I've done

that consistently over the last 10 years

and that's how I've been successful. As

long as that continues to work and the

markets continue to be more or less

stable. I know there's volatility, but

long-term markets do rise and leap

options benefit from rises in the long

term because that's what a LEAP option

is. It's a long-term call option. Then

more often than not, you should be in

the profit taking zone, which is

essentially when you're up 30 to 50%,

it's a good time to take money off the

table. It's a good time to realize a

profit. Now, there's also time risk. So,

leaps have time decay. time is an asset

until it becomes a liability. In the

last one month, it becomes more of a

liability. So, avoid having it in the

last final months. It is not going to do

you too well unless the stock moves

tremendously in the last month. But then

that would be basically trying to time

the trade and that's difficult to time

the market. The type of strategy that I

personally use in my own strategy. So,

avoid having it in the last final month.

And also one more thing is earnings

risk. So, earnings create uncertainty.

Even great companies can fall after

strong reports. So, make sure that a

company has reported positive earnings

in the last two to three quarters if

you're going to hold a LEAP option

through earnings. All right, let's

continue on with the course and next

chapter. Chapter seven, when to enter.

When to enter a LEAP option is where a

lot of your edge comes from. This will

be an amazing chapter because in it, I

will also add a bonus five stocks I am

choosing leaps on now and how to find a

similar setup even if you're watching

this many months into the future after

this video is released. Even with a

strong stock and a well ststructured

leap, bad timing can slow your returns

or put you in a draw down early. The

goal is simple. Buy weakness, not

strength. The only time you buy strength

is when a massive value gap is present.

Most beginners do the complete opposite.

They wait until a stock is already

moving up fast, feels strong, and looks

safe. I mean, it looks safe to them. But

there's a difference between looking

safe and being safe. When a stock is

high, many people mistaken it for the

time to buy. They get all excited, but

that's usually where they end up

overpaying. Exactly the point when you

think it's time to buy. Have you ever

been in a situation where you felt that

way until you bought and the stock just

went down right away or the next day?

Well, instead, you want to focus on

pullbacks, value gaps, and undervalued

stocks. Look for support levels, a place

where the stock just has tremendous

support from investors, or look for a

recent dip or temporary fear or selling

pressure. Another thing that I look for

is margin expansion, which I will

discuss soon. And lastly, look for a

business that is transitioning into

trends. These are moments where the

stock is cheaper, sentiment is weaker,

and your entry improves. I'll show you

five stocks that I like leap options on

right now as a bonus for making it this

far in this video, where the setup is

strong, and the business has a value

gap. The first stock I'm going to be

doing leap options is Amazon. Brief

summary before I give you the leap

option play. Amazon today is really

three businesses. one first you have the

retail machine second you have AWS which

is one of the most important cloud

platforms in the entire world third you

have advertising which is becoming one

of Amazon's highest margin growth

engines and this is why Amazon stock is

so interesting right now in Q1 2026

Amazon revenue grew 17% year-over-year

to $181.5 billion operating income hit

23.9 billion and AWS revenue grew 28% to

37.6 6 billion. AWS operating income

alone was $14.2

billion. That tells me Amazon is not

just growing. Amazon is becoming more

profitable while growing at the same

time. This is the part investors miss.

If retail margins keep improving, AWS

keeps compounding from AI demand and

advertising continues to scale, then the

business will look completely different

in just 2 to 3 years. Amazon could

deserve a much higher valuation over

time. With Amazon, you are not buying a

hype stock. You're buying one of the

strongest AI, cloud, logistics,

advertising, and consumer platforms in

the world. The risk is simple. Amazon is

spending aggressively on AI

infrastructure, and Wall Street may

punish the stock if spending gets too

high. But if that spending turns into

future AWS growth, Amazon could be one

of the biggest winners of the AI

infrastructure boom. So, the risk is not

a big deal if you're using a LEAP option

in the proper way. All righty, guys.

Let's go over an Amazon leap option.

Currently, Amazon is at $240 per share

in mid June as I'm recording this

example. And I am up $108,000 on Amazon.

But this is just a stock. What would be

really interesting is a LEAP option. A

LEAP option could surpass this by a lot

had I had the equivalent amount of

shares. In fact, I would have to put up

a lot less capital. So, let me show you

opening up a LEAP option from scratch

here on Amazon. and the target price

that I am targeting. So also I want to

show you the technical analysis on

Amazon. Amazon again trading for around

$240 per share. Okay. So I'm opening up

the chart right now and I want to show

you the bowlinger band. You can see here

how Amazon has fallen down here. The

market has taken a bit of a nose dive in

mid June. So from late May Amazon had

peaked at 273 and now on June 10th and

11th here Amazon is trading for 240 or

even 238. Now the stock has fallen below

the Ballinger band. The Ballinger band

is a very key level for me. I use

Ballinger band all the time whenever I

make option trading decisions. The

Ballinger band basically tells me what

trading range the stock is likely to

stay within. And the Ballinger band is

based off of statistics. So

statistically it tells you how low or

how high the stock can go based on

volatility. So here we can see that it's

at the bottom of the Ballinger band.

What's really interesting is that Amazon

also crossed the moving average. So the

moving average here has been going up,

but now Amazon has crossed below the

moving average, which tells me that it's

also looking more like a value play at

these levels. Now, the middle of the

Ballinger band is 260, and the moving

average is 253. I really believe that

we're going to bridge this gap, and I

think 260 is an and I think 260 is a

reasonable price target for Amazon in

the short term, and $300 is the

long-term kind of price here in the next

6 to 12 months. So, I'm going to go to

trade Amazon options and I'm going to

show you a leap option play and kind of

my expected return. So, I'm going to use

the option chain right here and show you

a LEAP option that I'm taking a look at.

So, I'm going to go for an expiration

date that's going to go out

approximately 365 days, which would be

June of 2027. Now, I'm going to go buy

call option and I want to buy something

that's in the money. I actually already

have a 225 here. So, this is the perfect

kind of example that I can show you

because I already have this. Now the

delta here is just slightly under 70. I

typically like to go for a 70 delta.

Gives you the best mix of upside and

sensitivity in the option without having

to go too high. So what I mean by too

high is if I go down here, obviously

these options have higher delta, right?

This is going to have 83 delta. And

that's better in terms of if the stock

goes up by 10 bucks, this option goes up

by eight bucks. But look, look at the

price. Look at the premium here. you

have to pay $76 versus if I go for

something like $225, it's literally

almost half the cost at $47. So the 225

call option here is much cheaper and

honestly almost 70 delta, it's pretty

similar, right? So if Amazon goes up 10

bucks, this will go up pretty much $7.

And that is a much more attractive

return versus something that's super in

the money like the 180 that I showed

you. So the 180 is a lot more expensive.

So, this is the leap option that I'm

going to go for right here. And I'll

kind of go over the payoffs here and how

to manage this trade kind of from open

to close. As soon as you open this up,

you pay $4,700. And here is your break

even price. Your break even price is

essentially $272 per share for Amazon.

Now, I said that I think Amazon's going

to go to $60 per share and it's going to

bridge this gap here in the short term

and that's good. However, the break even

is above the 260 line, right? So, what

can I do here? There's two decisions.

First of all, in the shorter term, if it

goes to 260, I can still make a profit

here and close this option for a gain at

any time that I wish. I do not have to

hold until June 17. There's no reason

for me to even hold till June 17 because

Theta really starts to kick in and

starts to eat away at the option in the

last 30 days. So, kind of the first

decision here is if Amazon moves from

240 to 260, that's $20. I'm looking to

take profit. So, if that $20 gain

happens, the delta, which is basically

7, right? That means that this option is

going to increase by $14. So if Amazon

goes to 260 in the next 30 to 60 days in

the shorter term, then I'm going to gain

$14 on this option. And I'll put up the

math on the screen right here, but $14

divided by 4770. That's the return that

Amazon leap call option would gain

within 60 days if Amazon goes up by $20.

So that gain is very attractive to me

and within the 60-day mark, I would take

profit personally. Okay, in my opinion,

it's good to take a profit earlier on,

especially if you get a quick gain on a

LEAP option. There's no need to hold it

into the later stages. So, in 60 days,

if Amazon goes up $20, that's my exit

point. Okay, that is where I want to

take profit and exit because $14 is

essentially almost a 30% gain on this

leap option. And I'm always looking to

exit between 30 to 50%. So, that would

hit my minimum threshold. Now, I could

also hold this option a bit longer and

look for something around the 50% mark,

which would mean that the premium would

have to go up by about 20 to $23. Now,

this is the short term. Okay, the

shorter term is if Amazon stock explodes

higher. Okay, now let's go over the

scenario where not much really happens.

You have the sleep option, it starts to

decay a little bit and the first two

months and Amazon is still at 240 or

even if it goes down a little bit at

230. At that point, we're still good. We

still have a lot of time, but of course,

we want stock to have some action. Okay.

So, at that point, we can reassess. Then

from there, if you reassess and you

still want to hold, okay, we're going to

give it two more months. Now, let's go

over the scenario where, you know, over

the next couple of months or next

quarter, Amazon really starts to run.

Okay, it starts to run up here towards

280 and higher, right? At the $300 mark

is where I think it'll be in roughly 6

months based off of growth and other

fundamental indicators. So, let's say it

goes up to 300. Okay, now 300 is much

higher than 272, the break even. Okay,

now we're above break even and we're

going to be very far along here in in

having a large gain. Especially if you

are in the first 6 months, okay, as we

get to June 17, then yes, you need to be

above 272 just to make a profit. But if

Amazon goes to 300, okay, and that

happened within 6 months, then we can

kind of take a rough calculation here.

I'm going to do some rough math here.

I'm actually going to round down to a 70

delta, put to a 60 delta just because

this delta will get a little bit smaller

as it gets eaten away by gamma and theta

and these Greeks right here. So within 6

months, this won't be as attractive. The

risk is higher in terms of less time

being available. So we'll take 6 and we

will multiply that by the difference

which will be $300 is the new strike

price. Okay, that's $300 will be the new

value of Amazon subtracted by $240 which

is essentially the price right now. at

$60 and $60 time.6, that's going to be a

$36 gain. So, as you can see, $36

divided by the premium that we're paying

up front, which is the $4770, that's a

really great point to really just take

profit. I'm not sure what more can

really happen. Yes, Amazon can go higher

than 300, that can happen. But

essentially at 300, which is my price

target in the next 12 months, if that's

reached within 6 months to even 8

months, I'm taking profit. I'm going

because after that, the risk is just too

high. As you get into the final stages

of a leap option, the theta decay will

start to eat away at it and also holding

it longer decreases your annual return.

So if you hold longer, you are spending

more time to make essentially about the

same money. So the risk is just too high

for just wasting time. All right, the

second stock is Na'vi Semiconductor,

which makes special power chips that

help electronics use electricity more

efficiently. Their technology helps AI

data centers, EV chargers, and high

performance computers run with less

heat, faster switching, and lower energy

waste. Na'vias helps improve the

electrical power systems underneath AI.

Now, Navitas could become one of the

biggest hidden winners of the entire AI

revolution and AI infrastructure boom.

Many investors are focused on video

chips. Very few investors are focused on

what powers those chips. This is where

Na'vias comes in. The world is running

into a power problem. AI factories are

consuming insane amounts of electricity.

Every new AI data center needs faster,

cooler, and more efficient power systems

just to operate at scale. And

traditional silicon is starting to hit a

limitation. That's why gallium nitride,

also known as GN, is becoming such a

massive opportunity. Navitas specializes

in GN and silicon carbide power

semiconductor designed for AI data

centers, EV infrastructure, industrial

electrification, and high performance

computing. This matters because GN

allows faster switching costs, less

heat, higher efficiency, and better

power density. Smaller and more advanced

power systems is also very important. As

AI racks move towards extreme power

densities, companies are going to need

dramatically more efficient power

delivery infrastructure underneath the

AI layer itself. And that is exactly the

type of market Na'vias is targeting. The

company recently reported Q1 2026

revenue growth of 18% sequentially

driven heavily by AI data centers, grid

infrastructure, and industrial

electrification. High power markets now

represent the majority of their

business. This is important because

Na'vias is actively transforming from a

small consumer charging company into a

higher growth AI power infrastructure

company and Wall Street is starting to

notice. The stock exploded after

investors began understanding the AI

power opportunity and partnerships tied

to next generation power systems. The

risk is simple. This is still a smaller

company with volatility losses and

execution risk. But if AI data center

spending continues accelerating

globally, the companies supplying the

actual power infrastructure underneath

AI could become some of the biggest

winners of the next decade. Most

investors are chasing the AI brains.

Na'vias is helping power the AI body.

And if this company executes properly, a

5 billion valuation may only be the very

beginning. Now, let me show you a leap

option that I'm looking at for Na'vi.

All righty, let's go over a Na'vi leap

option. Na'vias has had a lot of

volatility. In fact, over the last one

month, Na'vias is down 6% despite going

from a $19 stock up to a $32 stock,

which is an insane run in a short amount

of time. This stock is incredibly risky.

This stock has so much risk that it can

literally go up and then the next week

or two just kind of come crashing down,

coming back up, and then crashing back

down. Now, I do see this as a nice

pretty pattern here because Navitas is a

good long-term stock, and this is a a

level that I like to be in the stock. I

think that it can be $30 again, right?

It's only done that twice in the last

one month. So, can that happen again? It

is very possible. So, I'm going to go

trade Na'vias options. Now, here I want

to give you a more modified example that

I'm doing with my personal money. And

that's just because there is a lot more

volatility on Na'vas. So, let me go for

something that is it's still a LEAP

option, but it's not necessarily going

to be a 300 day leap option. It can be

200 days. Okay. Now, I'm gonna play this

a little bit more shorter term, which is

higher risk, and I'm okay with that,

because the whole point of a leap option

is to get a very efficient score, let's

call it that. So, instead of having to

pay $2,100 here, I can basically pay a

lot less and even half because $8 is

less than half of $21. So, here the math

would be pretty favorable. Okay, so the

whole point of a LEAP option for me and

in my opinion is to get more capital

efficiency and leverage. Okay, leverage

is risky if it goes down. Leverage is

good if it goes up. kind of similar to

how a mortgage works. You put a little

down and then you get a big benefit if

the value of the house rises, right? So,

here is a $20 strike price. This is what

I'm looking at. Now, the delta here is

still.7. Okay, that's pretty crazy

because the delta you would imagine

would be closer to 50 since this option

is not in the money by that much. It's

only in the money by a dollar. A lot can

go wrong here, but here the delta is 7.

And that is because the implied

volatility is so high. This is probably

the riskiest play that you can look at

in terms of a leap option, but it can

also reap big rewards if good things

happen. And Na'vias has gone to 30

multiple times in one month. This option

can be shorter term because Na'vias

could literally do that again in the

next month. So, if that were to happen,

let's go over some math. Okay, so I'm

going to click this option right here.

$20 strike price and our break even is

going to be very high at 28. However,

this is a very long-term option going

out till January 2027. We're doing this

video in June of 2026 in mid June. I

have 6 months here. I have a very long

time and my goal is over the next one

month that Navitas can hit similar

levels that it has been at twice

already. So in that case, Theta would

actually not kick in very much. Okay,

these Greeks would not really affect the

option greatly. The greatest effect

would be delta. So the delta.7 here is

what we will take a look at. Now, if

Na'vi goes to $30 per share, that's

essentially almost $9 gain. Okay, almost

$9. Hey, let's round it down. Let's call

it $8. Let's say we take profit early.

And if Navitas hits $29, that's where I

would take profit. That is pretty much

my personal plan. So that's an $8 gain

roughly times the delta.7. That's about

$5.60. That is the rough math here.

Okay. Now, that's a very attractive

return. And that is my exit price on

Na'vi. That's what I'm looking to do

myself personally. And within 30 to 60

days, if that happens, then I am very

happy to take a profit and basically

move on to the next play. Next stock is

Microsoft. Microsoft is one of the most

important technology companies in the

world because they own multiple massive

businesses at the same time. Most people

think Microsoft is just Windows and

Office. But today, Microsoft is really

an AI company, a cloud computing

company, and a software company. Not to

mention gaming company, enterprise

infrastructure company. All of these

things combined into one big giant

behemoth. Their Azure cloud platform

helps power websites, apps, AI systems,

and business infrastructure across the

world. This matters because as AI demand

explodes, companies need more cloud

computing power, data centers, and

enterprise AI tools. And Microsoft is

positioned directly in the middle of

that trend. They also partnered heavily

with Open AI which helped accelerate

products like Copilot across Word,

Excel, Teams, and enterprise software.

This is why many investors see Microsoft

as one of the safest long-term AI

investments. The company generates

massive cash flow, has strong profit

margins, and owns products businesses

use every single day. The risk is mainly

valuation and AI spending costs. But if

AI adoption continues growing globally,

Microsoft could remain one of the

biggest winners of the next decade

because they are supplying both the

software layer and the infrastructure

layer underneath AI itself. Here's a

leap option on Microsoft. All right,

let's go over Microsoft. So with

Microsoft, I actually have a very

interesting play. It's a little

different. I'll go over this new option

strategy that I haven't really discussed

in this leaps video, but this is a debit

spread. Okay, I'm going to show you a

LEAP option. And I'm going to also show

you this debit spread because this debit

spread is pretty much a leap option, but

it's an out-of-the-oney leap option. So

I ended up buying a 450 call option and

selling a 520 call option. And this

expires in a very long time in 1217 of

2027, so over a year. This is pretty

much a modified leap and I am reducing

the cost of a out ofthe- money leap by

selling a call option against it. This

is called a call debit spread. And I do

have this in my six-hour free course

here on YouTube. You can check out at

the end after you watch this video. It

can be a great strategy for you to

utilize as well. But this is very

similar to a leap strategy. Okay, I'm

just buying an out- of-the- money call

option. I use it well in my challenges

and my one-on-one coaching because it

can really do very well and it doesn't

require much capital in comparison to

buying stock or even a LEAP option. This

kind of reduces your upfront cost in

many ways. So, it's even more efficient.

But let's go back to an example right

here that we're going to do a leap

option on with Microsoft because

Microsoft is very attractive under $400

per share. I really see Microsoft as a