[10/19/23: updated stop to 155]
We’re taking a Leap here.
The overwhelming majority of options trades we put on at All Star Options tend to be structured in a way to participate in moves that should take place within 2-8 months. The shorter duration trades are usually trades where we are net short premium (naked puts, short strangles, bear call spreads, etc), whereas our longer-term trades tend to be ones where we are net long premium at attractive prices (in volatility terms).
Today, we’re doing something we’ve never done here. We’re making a long-term bet utilizing LEAP options.
“LEAP” is an acronym for Long-Term Equity Anticipation Securities. Essentially, this means we’re taking a position in options that have greater than a year until expiration.
If you were on the @allstarcharts twitter SPACES chat this morning (every trading day at 11:30ET), you heard us riffing on today’s trade. [Read more…]