I made $55,000 in 6 months on ONE trade. A 600% return He…

Let's not waste any time and get right into it👇

Long Term Options are simply a way to "invest" on a more aggressive way

There's a specific strategy that I use to pick stocks for long term options, but first...

let's talk about WHICH options to select:

With typical swing trades I always prefer going ITM.

Not the case for LEAPS.

With longer term options, I love going OTM

Decay isn't that much a factor and you'll be paying less per contract since leaps are already pretty expensive

Depending on the stock, I'd recommend going 20-30% OTM of the current share price

This is pretty loose, but the main concept to recognize is that you want the contracts to be ITM within 6 months

There will be a point where decay will kick in and for that you'd want to be ITM.

If you aren't sure about the strike, then go more ITM. It's always better to get closer to ITM then OTM.

Okay, let's move onto date to expiry:

Ideally, you'd want to get the farthest options you can get.

Typically 2-3 years for most stocks.

I got 2 years out on that $HD trade and was up 600% in 6 months.

There really aren't any advantages to getting closer dates other than the fact that they're cheaper

When in doubt, get another month out🔑

Let's get into the actual strategy now:

There's only 2 pieces of criteria that I look for when it comes to picking Leap Options

The first one?

Trend.

This one is pretty simple👇

Just zoom out on a 3 year chart and look for stocks that are on a very solid uptrend.

The fewer consolidation periods, the better

Just higher highs and higher lows

Here's the second piece of criteria:

2. Relative Strength

What is relative strength?

It's stocks that are performing well when the market isn't

All you have to do is see which stocks are either sideways or trending up WHILE the market is dropping

Why is this important?

It shows which stocks institutions are buying

Money isn't just being sold when the market drops

It's being transferred to other assets/stocks

All you have to do is find which stocks money is being dumped into when the market (SPY/QQQ) is dropping

Combine that with trend and long term options and say goodbye to average 10% returns and hello to 200% or more

One last tip:

This strategy also works on $SPY and $QQQ

You can't use relative strength, however long term options can still net you HUGE returns

Now I'm gonna show you something even crazier:

If you were to buy 3 year long options on $SPY at the TOP of the 2020 market crash, you still would have made 200% in the next YEAR

buying right before a crash...

Here's the option

I hope you all learned something from this thread

If you did, please leave a like + RT

Also follow me @FT__Trading for educational tweets on stocks, day trading, and everything in-between

I'm building a program that will build and clearly define a profitable trading strategy tailored to you

Check it out: @pheemu_io

I made $55,000 in 6 months on ONE trade.

A 600% return

Here's how you can turn typical 10% returns into 200%+ using long term options:

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I made $55,000 in 6 months on ONE trade.A 600% returnHere's how you can turn typical 10% returns into 200%+ using long term options:

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I made $55,000 in 6 months on ONE trade.

A 600% return

Here's how you can turn typical 10% returns into 200%+ using long term options: