Discover and read the best of Twitter Threads about #LEAPS

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Tow Truck Ready …

*Pushed The Button*
Same Same But Different, Still the same …

Freedom Rings
wo#DAWn BREAKs
n
Read 16 tweets
(1) So let me try to write something down on #options, more specifically #LEAPs (Long-term options).

Options?

Options give you the π—Ώπ—Άπ—΄π—΅π˜ to buy (call) or sell (put) an underlying asset (= stock/ETF) at a fixed price (= strike price) up to a spec. date (= exp. date).
(2) Premium.

Ofc. options aren't free. You'll have to pay a premium for this right. Important to keep in mind is the multiplier, which often equals to 100 (every option covers 100 of the underlying shares).

𝗣𝗿𝗢𝗰𝗲 𝗽𝗲𝗿 π—Όπ—½π˜π—Άπ—Όπ—» = π—½π—Ώπ—²π—Ίπ—Άπ˜‚π—Ί * 𝟭𝟬𝟬 (+ π—°π—Όπ˜€π˜π˜€)
(3) Pricing
Options pricing is determined by the four greeks (separate thread in the future). Important to take into account is that options will be more expensive if:
1. Your expiration date if further out (#theta).
2. The closer the strike price lies near the asset (#delta)
Read 13 tweets

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