@cityofjoy8830
This is spot on instead of buying futures it's the 2nd best option. Appreciate your efforts 👌
@chessplayer0809
You have explained it so well, even a novice can understand how, when and why to buy deep in the money call option. Thank you very much for this informative lesson.
@yannickguerry4342
I run a version of this, but with a tighter plan and stricter exit rules. Buy at least 21DTEs around 80 delta on stocks that meet my screener criteria. Good liquidity (tight spreads). Set an initial (manual) stop loss of half average true range (ATR). If stock moves up to 1 ATR will roll for a profit (if profitable) and will use the 10-day EMA as a trailing stop. Once rolled will set a new half ATR stop. Aim to close 1 week before expiry. Position size based on ATR so that each trade carries equal risk.
@MichaelKane-bp8jj
I bought Lee's book about 5 years ago. His book introduced me to DITM options and so many financial pros that I have spoken to, didn't even know what they are. I have been a HUGE fan of DITM options, and the returns are so much better as he has highlighted in this video. They work especially well on high price and low vol stocks, IMO. Thanks Lee and keep the videos coming!
@SebaTarth
You are the best at describing this strategy thanks for the video! You also sound a touch like Howard Stern every now and then :)
@mangthanghaokip
Very insightful and easy to understand. I have been doing it wrong all this time. Thank you. New subscriber
@Laneybug3
Thanks!
@BlakeC341
Great video. Subscribing for sure.
@PasqualeMalpeso
First time i viewed the video and it is perfect
@ocninjatrader8993
Thank you for the explanation of the Deep In The Money Options.
@Fred2-123
An alternative way to think about a DITM call is to consider it as a virtual margin purchase. You borrow the difference between the stock price and the premium. You pay the excess of (strike + premium) over the stock price. Then compute the APR interest rate as the excess over the borrow, annualized. AAPL 335 days out, price 197.25, 130 strike. Premium (midpoint between bid & ask) = 75.35 Borrow = (197.25 - 75.35) = 121.90 Net cost = (130 + 75.35) = 205.35 Excess (virtual interest) = (205.35 - 197.25) = 8.10 APR = (8.10 / 121.90) * (365 / 335) = 7.23% The leverage is approximately (stock price / premium) = (197.25 / 75.35) = 2.6X
@dmb8623
Thank you so much for that delta and breakeven calculations.
@shareholder2988
:finger-red-number-one::finger-red-number-one::finger-red-number-one: - Thank you .
@SuperInsuranceman
I trade this like follow: I buy two Leaps. A 90 delta Call and a 90 delta Put. Then I add from the total paid the daily Theta (extrinsic) that I lose for 45 days and I sell a 45 DTE ITM Call just above the break-even point on the Call side I found and a 45 DTE ITM Put just above the break-even point on the Put side I found. By doing so I become profitable if the stock goes down or up within the break-even points.
@akshatrastogi9063
If I can recover the time premium in LEAP (i.e. $8), through short calls, in couple of poor man's covered calls, I am more than happy. That means, we are holding exact 100 shares at 30% of buying power. Any premium beyond that is icing on the cake as it reduces our cost basis.
@easy10
Saw the NVDA Jan 2026 $0.50 call option bid $108. Fair amount of open interest on it too.
@Trang-u9o
THANK YOU Lee!
@caligal2010
I'm super confused about what you're explaining starting from the @24:35 mark. I'm super new to options but I'm learning! You do such a good job with actual examples of what to do. But can you explain that bit to us again? Thanks!!!
@MRPBIJLANI
respect from india
@sheryllynmc