No. of Recommendations: 1
I read about an options strategy, where instead of buying the stock, (it has to be one you have researched and believe in), you buy a ditm leap on the stock with a delta of 100. The idea is that say the stock is 20, and the leap costs 12.00. Once you reach break even, every dollar increase in the stocks price gives you a 20/12*1.00 increase in the price of the option so you get a much better ROI. I don’t know if this is a good strategy, or if it is easy to find situations like this. I stopped trading options 2 years ago because I have a full time job, and also, due to a disappointing trade. I tried thinkorswim, and I am out of practice using it. I used to use it to do my research. Thoughts?