Hello everyone! I have been learning options lately through youtube. From what I have understood, it seems like leaps are relatively safer strategy with decent chance of success. For example: I am looking at MSFT 19 Jan 2024 205C for $52. I believe the worst case in this scenario is that in late 2023 or Jan 2024 I end up losing $5200, which if it’s ~10% of my portfolio, I am fine with losing. But on the other hand there are good chances that I will take some profit and exit. Used optionsprofitcalculator website.
Please let me know if my understanding is correct, thank you!
P.S Inthemoney youtube channel is my source of learning. Awesome channel with great explanatio.
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