Home
S T A R T H E R E
S U B S C R I B E
T R A D E S
S e a s o n a l s
F u n d a m e n t a l s
T e c h n i c a l s
C H A R T P A T T E R N S
S T O C K F U T U R E S
O P T I O N S
S E C T O R S
1 9 2 9 C R A S H
W A R R E N B U F F E T T
W E E K L Y C H A R T S
M E E T U P
T R A D E R S
C O M M O D I T Y
D A R V I S B O X
B E A R M A R K E T
C H I N A S T O C K S
L E A P S
S T O C K C Y C L E
S T O C K P O E M
C A N S L I M
S P E C I A L
B O O K
V I D E O

Use Leaps and invest smartly

Leaps = Long Term Equity Anticipation Securities, another name for longer term options.

Let me show you how to buy stocks at a fraction of the cost by using Leaps.

Leaps usually expire in the third week of January, so you can buy a 2009 or 2010 leap on many stocks, many because not all stocks have LEAPS, by checking with the CBOE ( Chicago Board of Options Exchange ) you can get a free list of them. click below for a CBOE list of LEAPS.

Once there scroll down the page and hit the Equity LEAPS SYMBOL DIRECTORY button.

<<<<<< A LIST OF LEAPS HERE <<<<<<<

There are two advantages to owning a LEAPS call relative to owning the underlying stock. First, the investment in a LEAPS call is less than buying the underlying stock. Second, it is likely that the profit potential in percentage terms is greater for the LEAPS call than for an investment in the underlying stock. This is generally described as "leverage."

On the other hand, there are also some disadvantages to owning a LEAPS call relative to owning the underlying stock. First, because of the time premium portion of the LEAPS call, the break-even point at expiration, is higher for the LEAPS call than for the stock. Consequently, it is possible for the stock price to rise slightly and for the stock owner to have a small profit while the owner of a LEAPS call might have a loss or only break even. Second, there is the issue of time. A LEAPS call has an expiration date, and it is possible for the option to expire worthless, causing a 100% loss of the premium paid, while the stock continues to live for a price rise after the expiration date of the LEAPS call. Third, the "leverage" factor which worked to the advantage of the LEAPS call in the case of a stock price rise can be a disadvantage in the event of a stock price decline. Remember that unlike stocks, options do not receive dividends or carry voting rights.

Now instead of buying the stock right out with 100% cash you can buy a year out leap and control that stock for a year, it`s like a down payment only, and all you can lose is the amount that you paid for the leap and no more. This is not margin so you will not have a possibility of losing more, only what you paid and that is the worst case, and thats only if you let it expire worthless!

The best part of this is that you can sell a call or a put against your position each month and recieve the premium monthly. Just like a covered call, many people buy the stock and sell monthly calls or puts against them as a way to make income monthly, however in this case by buying the LEAP you only put out a fraction of the cost of the stock and still you can make the same monthly income.

Now if you want to learn how to make a monthly income using Leaps just click the link below.

>>>>> Monthly Income using Leaps <<<<< click here<<<<<