LEAPS Trading Strategies: Powerful Techniques for Options Trading Success

Why not give your options more time?

Investors are increasingly turning to LEAPS (Long–Term Equity AnticiPation Securities) to combine the advantages of options trading with the benefits and security of a longer time frame. Here, Marty Kearney of the Options Institute at the Chicago Broad Options Exchange examines the wide range of practical and effective strategies for managing LEAPS, and shows you how to match these strategies to your own risk profile.

Learn how to tailor your options program using LEAPS and devise key strategies to improve profitability, protect profits, and avoid losses in long stock positions.

Use LEAPS to produce monthly income Identify key elements in determining LEAPS prices Master LEAPS symbols and expiration cycles Insure your portfolio against market pullbacks Manage year–end tax consequences Establish security positions with little risk

Kearney walks you through the inner workings of LEAPS and shows you compelling strategies for incorporating them into your overall approach to the market. With access to the online video, you’ll have everything you need to begin profiting with LEAPS.

Publisher′s Preface v
 
How to Use This Book vii
 
Meet Marty Kearney ix
 
Introduction: Profits from LEAPS Options xiii
 
Chapter 1: A Brief Review of the Basics 1
 
Chapter 2: Why Bother with LEAPS? 18
 
Chapter 3: Using LEAPS in a Gifting Program 30
 
Chapter 4: LEAPS vs. Stock Ownership 40
 
Chapter 5: Covered Writing with LEAPS 56
 
Chapter 6: LEAPS Protective Puts and Collars 74
 
Chapter 7: A Year–End LEAPS Tax Strategy 92
 
Glossary

Marty Kearney is a popular senior instructor with the Options Institute, the educational arm of the Chicago Board Options Exchange. He has helped brokers develop new business with conservative option strategy such as covered–writing and portfolio hedging, and trained brokerage firms′ compliance department staff. Kearney has also been a regular contributor to many news services including Reuters, Group W, The CBS Radio Network, Derivatives Week, Barron′s, Fortune, Ticker Magazine, SFO Magazine, CNBC, Bloomberg, NPR, and others.