I need to get something off my chest. I

think not enough people are using Leap

Options and that's a shame. That's a

huge shame because Leap Options have

been able to basically leaprog my

portfolio to multiple six figures. And I

think people right now are chasing the

wrong things. And if you learn LEAP

options, I truly believe that if you

implement it in your own portfolio that

it can make a really big difference. So

this video is pretty much unstructured,

unplanned. And I'll give you the summary

of the video if you don't want to waste

any time on it. Summary of this video is

use more leap options. Use up to 15% of

your portfolio in LEAP options if you

have a big portfolio. Something like 35

to 40% if you have a medium portfolio.

And honestly, this is going to be pretty

crazy. This is crazy. Potentially even

very risky. But if I had a small

portfolio and I was starting all over

again and my portfolio was only 20K, I

would put everything that I have in LEAP

options. That's because leap options

give you such a huge advantage. When I

was working on Wall Street, I sat next

to a trader and he was a little bit more

long-term minded. Usually traders are

looking for short-term gains and they're

making day trades, swing trades. But

this trader was talking to me

personally. He was telling me what he

was doing with his private money, not

with the trading capital that he has at

the firm, but what he's doing with his

private capital, okay, his personal

capital. And he told me that he doesn't

even buy stocks. This was a long time

ago. This was when I was working in New

York City. I was in my early 20s and I

was still learning options. I was still

pretty much growing my portfolio from,

you know, five figures. I had a very

small amount of money. I was working

very hard. I was trying to learn

everything that I could. I was reading

books on options trading. I was seeking

out mentors. I was working in the

industry. And when this trader told me

that personally he was just using LEAP

options and he doesn't even have any

shares of stock in his portfolio kind of

blew my mind. And it made me realize

that, you know, this strategy seems

really risky, but it seems to also be

working out for someone. And after that

moment, after, you know, kind of him

telling me that, and he was really busy,

so he didn't really tell me all the

details of why he was doing it. It's not

like, you know, he was getting paid to

teach me or anything, right? He was just

kind of like, I don't even want to call

it a friend, more so like just someone I

work with, co-orker, right? So, he

didn't tell me the full breakdown of why

he's doing this. And I guess I didn't

really ask him. Okay. And after that

day, it really made me kind of think

more about LEAP options. And I'm just

sitting here and I came to this

realization that I have to make this

video for you because I think too many

people are chasing rabbits and they're

chasing hype stocks. But actually, a

LEAP option is just a call option with a

long-term view, right? And if you use a

LEAP option to buy essentially a stock

that you like that you think is going to

go up because a LEAP option is more

capital efficient because you can put up

less capital upfront then even if the

stock has a modest growth rate right

even if it moves up say 5 or 10% a leap

option because it's leveraged would have

a greater return in most cases than a

hype stock where an investor gets lucky

and the stock goes up 40%. a 10% return

on a stock where you use a LEAP option

could end up outperforming a stock that

has a 40% return and you know getting

lucky and has higher volatility. So you

see a LEAP option could basically match

a high growth stock when you're not

using it on a high growth stock. And

that's what's really interesting is what

happens when you actually use a LEAP

option on a high growth stock. What

happens if you basically kind of like

break it up into certain buckets, right?

Let's say that few of your buckets,

right? Let's say we have three or four

buckets. Okay, one bucket is safe stocks

that are likely to rise but not by that

much and you use LEAP options there. And

then you have medium volatility stocks

which say are also likely to go up,

right? But it's medium volatility and

use leap options there. You're kind of

diversifying these two buckets and then

you have a third bucket where it's a

high-risisk bucket. in this high-risisk

bucket. Maybe you buy all these, you

know, quantum computing stocks or AI

hype names or whatever, you know, the

YouTuber that you're watching is

recommending with high volatility,

right? Then if you use leap options in

these three categories, right? What

would happen in that case? Well, I sat

down and I looked through the entire

history of all leap option trades that I

made and I realized that throughout

history, I have grown my portfolio. In

fact, in 2021, I had a huge growth here.

I had a 100K portfolio that I turned

into 700K and I was using risky leap

options. But then after that, I

continued to grow my portfolio.

Obviously, if you guys are subscribed to

this channel and you have watched my

videos, my portfolio is right around 4

million and it's not really growing that

much because I'm withdrawing money from

it. But the whole point is that when I

looked at my history getting to, you

know, this $4 million mark and doing my

aggressive leap strategies in the

beginning from 100K to 700K, I realized

that I actually shifted strategies yet

my performance didn't change that much

later on in my career after 2021

performance. Right? So in 2021 when I

had 100K and I turned it into 700K, I

was mainly trading Tesla. Now Tesla was

pretty much the most risky stock that

you can look at. Yet it had a lot of

fanboys and it had a lot of positive

momentum and sentiment. Okay. So what I

was looking at Tesla was investor

enthusiasm. I was also looking at you

know fundamentally where do I think the

business can go and that is why I use a

leap strategy because a leap strategy

allowed me to benefit if Tesla stock

went up. However, along the way it was

incredibly volatile and my portfolio had

pretty big swings. And after I got to

$700,000, I basically thought to myself

that I feel pretty comfortable. And at

that year, by the way, I moved out of

United States. I went down to Colombia.

That was the first country that I

basically moved to to be an expatriot or

living abroad. Um, it was close to US

because I was kind of afraid of

traveling the world. It was kind of very

new to me back then. Um, so I went to I

went to Colombia because it was not too

far from Miami where I had an office.

The reason I'm saying this is because I

want you to start thinking about your

own portfolio. what number makes sense

to you where you would be comfortable

and if you're newer to option trading

you might not know that number and you

also might be experiencing a lot of

volatility and that's where I think it's

really important to not only understand

leap options but understand how to

generate premium on leap options as well

so I recently made a video on this

channel which was a leaps course

essentially it was like an hour long and

I'll link it in description I'll have it

for you at the end but an important

strategy that I discussed on those leap

options was essentially selling covered

calls. And this is also why I think leap

options are so underutilized. You know,

I think LEAP options are so powerful,

not only because they're capital

efficient, right? And that, you know,

trader that I was working with who did

me a really huge favor and told me that

he doesn't even buy stocks anymore. This

was a long time ago. He was pretty

innovative at this, I guess. Uh he's

probably retired multiple times over. I

don't keep in touch. But when he gave me

that idea and I started implementing in

my portfolio, it was only later that I

realized that a leap option could be

basically turned into a covered call.

So, not only is it capital efficient and

a high growth, you know, albeit higher

risk strategy, you can actually reduce

volatility by selling options on a leap.

Okay, this actually called a poor man's

covered call. I discussed that in the

video where you can check out after this

video. But the whole point is that a

leap option actually has a lot of

versatility. And a lot of option

traders, they like covered calls for a

good reason because, you know, covered

calls are great. You own a stock, you

sell call options against your shares,

collecting premium. You cap your upside

whenever you sell a covered call. And

essentially, it actually lowers

volatility a lot because you have

cushion. Whatever that premium is, it

reduces your draw down risk and it adds

cash into your account. Okay, that's

kind of what a covered call is. It's

selling a call option and giving the

rights away to your shares if they go up

to the strike price at which you sold

your covered call at. And when I

realized that a LEAP option,

specifically a deep in the money leap,

and a deep in the money leap option is

an option that has a 70 delta or so,

it's really anything pretty much above

60, 70, 80 in that range. And I'll tell

you where the name or term is uh coming

from deep in the money. It's because the

option strike price is below the stock

price. Okay? So, if a stock is at $100

per share and you buy a call option or

a, you know, a longer term call option

and that's a leap option if it's one

year and say we go for a strike price of

80. Okay? So, if it's 80 and the stock's

at 100, well, this would be in the

money. It's not only in the money. It's

actually deep in the money because $100

is well above 80, right? it's well well

above 80, especially on a stock that's a

bit safer. Maybe it's a MAG7 stock. Now,

there's no MAG 7 stocks that are at

$100, but you know, Apple's at 300. So,

if you were to buy an Apple 250 call

option or call LEAP option, you would

essentially control 100 shares of Apple,

right? And in many cases, when you're

buying a LEAP option, you could do so at

a fraction of the cost uh in terms of

premium that you have to put up, right?

So, in terms of premium that you have to

put up, it could literally be a few

thousand. Okay? So, let's call it $5,000

in this example. So, I would rather put

up $5,000 and basically control 100

shares of Apple versus having to buy it

at $300 per share because at $300 per

share, I'd have to fork up $30,000. So,

I hope that you're understanding how

valuable a leap call option is because

especially if you have a small portfolio

and even if you don't have a small

portfolio, when I was scaling and I hit

$700,000 and I moved to Colombia, it was

my goal to get to seven figures, but it

was also my goal to have enough premium

coming in from my portfolio because it's

one thing to have a bigger portfolio and

even to get to seven figures, but it

doesn't really feel good spending, you

know, money and kind of withdrawing from

your portfolio and having your portfolio

go down. That is an awful feeling

because you grow your portfolio and you

know we don't want to reduce that value.

It feels really bad to us. We don't want

to be losing money even though we

understand that maybe our option

portfolio is our retirement plan and

maybe you're already in retirement and

you use options to stay in retirement

and to fund your lifestyle. It still

feels bad when the portfolio goes down.

So I was kind of in that dilemma. Well,

what was the amount that I could spend

per month? I wasn't really sure. So, I

knew that if I got the portfolio to

seven figures, I'd be in a good spot. I

still wasn't sure, you know, I wasn't

used to really what I can do

consistently. Okay? And that's really

the key here, which is becoming

consistent, becoming stable because of

course there's a lot of hype stocks in

the market. And if you use LEAP options,

sure, maybe, you know, you can have a

big swing in your portfolio value. And

I've seen some of my students go from,

you know, 50K to 350K. I've seen that

happen. It's happened many, many times,

actually. and people will grow their

portfolio incredibly fast, especially in

bull markets. But there's kind of two

things there. Question one is, well, how

much can you spend per month to, you

know, not lose money. And question two

is how do you maintain that wealth?

Because a common mistake that I see

happening is people will jump in with

leave options and because the market is

bullish long-term and if you pick the

right stocks, which you know, there's

plenty of good stocks. There's, you

know, Nvidia and there's, you know,

Apple and there's lots of good MAG7

stocks that are growing, Microsoft, etc.

How do you actually hang on to that

money? Because something that I see all

the time is people get overconfident,

really cocky, and they use LEAP options.

They grow, but when the market pulls

back, they end up giving back a majority

of their gains. So, I want to put

everything together here in kind of the

most simplest way that I can. I use LEAP

options to diversify my portfolio and

get bigger gains, and I do so with 10

different positions. So, that's pretty

much the solution that I figured out. I

was actually able to go from 700K to $

1.5 million in the next year. Yet, I was

not chasing Tesla. Okay, that's

something really important to understand

because in the beginning kind of, you

know, career point when I wanted to

become a trader and trade with my own

money and not have to work on Wall

Street and not have to go to my, you

know, I can't even say 9 to5. My job was

6:00 a.m. to 7:00 p.m. Okay, I had to be

in the office super early specifically

when I was working at Goldman Sachs

because I was working in California and

California West Coast, some of you guys

are out in California, you know that the

market opens up at 6:30 a.m. on the

Pacific time, right? So, it was

incredibly difficult and I was making

like $75,000 a year, which is actually

pretty good because this is over 10

years ago now or so. And I was pretty

happy, but I wanted to get into the

position that, you know, I'm more so in

right now, which is, you know, I'm

relying on my own portfolio. I take

withdrawals from my portfolio every

single month and then I spend that money

and my portfolio is big enough that even

in slower times because of course, you

know, I'm not a financial adviser. I'm

not perfect. I make mistakes. I can't

predict the future. And option trading

is risky. So there are some months where

I don't have a positive performance.

There are some months where I might have

a negative performance. The market comes

down and my portfolio comes down. And

that's because a LEAP option is a

bullish strategy. And in my portfolio, I

have a lot of leap options. And I'm

actually shifting more and more to LEAP

options, which is why I've been making

videos on it. That's because I am

understanding just how valuable this is

in my earlier journey and how valuable

it is for someone looking to grow today.

You know, if you want to get to

retirement, if you want to build wealth

without getting lucky, without taking on

too much risk, a LEAP option and a LEAP

strategy is a very useful strategy to

use within your portfolio. Now, I would

still diversify. I would use LEAP

options on stocks that you are

comfortable on, that you are confident

in. I have a whole list of stocks that I

use in my own Discord community that I

research all the time, and I stick to

basically the same 20 to 25 stocks. I'm

never trying to get out of my circle of

competence. If you read any Warren

Buffett books or you've looked at any,

you know, top investor videos on

YouTube, you know what a circle of

competence is. It's where you feel

comfortable and you have basically an

edge. Okay? So, I try to have a circle

of competence of stocks. For me right

now, it's AI stocks. I understand a

majority of their business and you know

why they're growing the demand, data

center uh demand, infrastructure

spending, etc. I also was a software

analyst for one of my jobs that I was

working at a quant fund and I was

specifically in the software sector or

IT sector. So I was looking at

technology companies and that was very

exciting for me. I worked with nine

analysts. There was nine sectors. I

think now there's a 10th sector which is

real estate that was added uh several

years back but I was working with nine

analysts and I was understanding market

factors such as momentum earnings

analysts um you know I was meeting with

analysts actually I remember I met with

Carnival Cruise uh CEO he was at the at

the office and these these uh CEOs they

go around to you know buyside firms

because buyside firms offer pretty much

liquidity for the stock right they're

they're buying and they're investing

billions of dollars but anyways not to

go on a tangent My LEAP strategy right

now can be summed up like this. I have

10 different positions that I basically

buy LEAP options on. I don't want LEAP

options to exceed 15% of my portfolio.

That's because I have a bigger

portfolio. Now, if I was kind of looking

to scale and I was more earlier in my

days, I would potentially go higher on

the percentage of LEAP options. However,

keeping in mind leap options are a risky

strategy in the fact that if the market

pulls back, a LEAP option loses money.

Okay, a LEAP option will lose money

because a LEAP option is a call option.

And in fact, if it expires out of the

money, you can lose all of the premium

that you paid for the LEAP option, which

is why it's very important to learn how

to manage LEAP options. Uh, anyways, I

have a whole free course here on

YouTube, which I just posted recently.

It's totally free, and I go step by step

into opening, managing, uh, closing, and

how leap options work with examples. So,

yeah, if you enjoyed this video and you

want to watch that, then yeah, I'd love

to have you on it, it's right here. And

if you enjoyed this candid video without

me preparing or having any script or

anything like that, telling you kind of

what I think about leap option, then I'd

appreciate it if you subscribe. Thanks a

lot and uh see you in the next one.