What are Leaps?
Let's do our homework and find a great stock. Here is one trading at $65 we believe after a year it will be worth more or stays in an up-trend. We buy the Stock now with the expiration a year out which is trading at $94.
What if instead of buying the Stock for $65 what if we do a Leap (or buy the right to buy the Stock in two years at a set price today). If we buy the $65 Strike Price, our investment would be $18. After a year the Leap is worth $32 for a 100% return on our investment! Wow, What a great idea! So think about this if we could find great stocks every year we could potentially double our money every year using this technique. What if you can't find great stocks that will make 44% returns in a year? That's okay this technique can help you turn any annual win into a big deal. You can also use leaps to pull out monthly income by using a strategy called a diagonal spread Remember to always paper trade any new strategy before putting real money into the Stock Market.
 
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