Sunday, January 13, 2013
Long Call strategy
1. Buy:
LEAPs, timing: 6-18 months out, cost: $1-2, level: OTM by two intervals, count: 5-10
2. Sell when:
Either half the time has elapsed or when the underlying reaches par, whichever is earlier
3. Build up:
If the underlying reaches par and continues to rise, take profit on current LEAP and add more long LEAP calls with the same strategy.
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