MPO
Market Position Overview = where are everyone currently at.
When selecting strike prices for leaps, I always consult the Market Position Overview to identify range overlaps. This allows me to strategically pick strike prices at the edges of these overlaps, optimizing risk and potential reward. However, I also consider other factors such as individual risk tolerance and current market conditions to make well-informed decisions.
Advantages of selecting strike price by the extremes for me is useful if you take LEAPS and sell calls or puts.
Disadvantages for selling puts or calls are not for those Faint hearted. ”Limited profits, Maximum Losses.” If you fear this statement. Stick to buying side of options. ![]()
LEAPS (Long-Term Equity Anticipation Securities)
LEAPS, which stands for Long-Term Equity Anticipation Securities, are options contracts with expiration dates longer than one year. They allow investors to make bets on the long-term price movements of underlying assets such as stocks. LEAPS provide investors with the flexibility to speculate on price changes over an extended period, offering a longer timeframe compared to traditional options contracts, which typically have shorter expiration dates.
Therefore Opting for strike prices at the extremes can be beneficial when trading LEAPS and engaging in selling calls or puts.
$TSLA 241220 150.00P$ For this example: I’ve selected the extreme 150 strike proce, 1. sold Put and bought it back to take profit and 2. entered again to sell puts to either buy back again or wait for it to expire in the future.
*Issue with this Event Thread, Cannot post pictures to illustrate the MPO range. ![]()
**Finally could attach picture to this post. ![]()
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Investing casually and learning as I go.
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