A free 2-page framework for deciding whether to buy the LEAPS now, wait a couple of days, or stay the hell away when a great company gets crushed.
No spam. Just income investing education and tools. Unsubscribe anytime.
Prefer not to subscribe? Download directly here.
Your cheat sheet is ready. Click below to download it — and check your inbox for a confirmation from us.
⬇ Get the Cheat SheetFile not downloading? Open in browser.
Two pages. Eight sections. A repeatable way to separate the stock got hurt from the business got hurt — before you put money on a red candle.
Five questions that strip the emotion out of a red candle — starting with the one that matters most: if I could not see the price, would today's news make me sell the company?
Three catalyst types with a default response for each. Panic and sentiment is the best immediate-entry candidate. Regulatory, safety, solvency or accounting damage is usually a pass.
The stock can be on sale while the option is not. A violent drop makes the call cheaper from the stock side — and fear makes it more expensive from the volatility side, at the same time.
Expiration, delta, intrinsic versus extrinsic, the IV on the actual expiry you want, and the bid/ask spread. A good idea becomes a bad trade if the spread is ugly.
The honest numbers: +18.2% at 252 days against SPY's +17.2%, beating SPY only 46.5% of the time, with a −23.6% average max drawdown. The raw return is a trap on its own.
Don't buy the red candle alone. Don't assume a bigger drop is a better bargain. Don't make IV the whole decision. Lean deeper ITM. Avoid certain catalysts. Give the thesis 18–24+ months.
Get the cheat sheet, run the crash test, and decide with a framework instead of a feeling.
Get the Free Cheat Sheet ↑This cheat sheet is for educational and informational purposes only. It is not tax, legal, investment, or financial advice. Options carry substantial risk and can expire worthless. LEAPS are still wasting assets, and a long call can lose its entire value even if you are right about the company.