Create a LEAPS Portfolio

Long-term equity anticipation securities – or LEAPS – are long-term options that can be used as a substitute for holding the underlying stock. LEAPS offer investors a way to create a large portfolio of stocks at a fraction of the cost with a more limited downside. This article will explore how average investors can create a diversified stock portfolio with LEAPS options in order to leverage their returns and reduce their risk. Read more

Using LEAPS as a Hedge

Warren Buffett recommends that individual investors purchase a basket of stocks and hold it over the long term. The legendary investor has rarely sold any of his holdings and managed to become one of the richest people in the world following this strategy. Unfortunately, many investors don’t have the patience or confidence that Mr. Buffett possesses. Read more

A Better Covered Call Alternative

Covered calls are perhaps the most popular options strategy for many investors. The strategy involves writing call options against an existing stock position in order to collect the premium. The investor collects the premium if the shares end lower than the strike price or gives up their existing stock at the strike price if shares are trading higher. Read more

Using LEAPS as a Stock Substitute

Long-term Equity Anticipation Securities – or LEAPS – can be extremely useful as a stock substitute for long-term investors. They can offer an attractive alternative to investors purchasing stock on margin while also allowing investors to participate in the markets with limited upfront cash requirements and limited risk. LEAPS are putting power of options in the hands of investors! Read more