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Someone bought 7201 contracts of the Dec 19 $500 strike calls for $16.35

This is a $12M buy.

They need the price to go up 29% to breakeven in 69 days.

Most popular LEAPs are also deep out of the money eg the $880 LEAP requires a 2.2x to be profitable and it is only 450 days out.

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GIANTDUSTYSQUID

Does this mean leaps are expensive/ poorly valued at this time?

Sol Hodlman

That’s a lot of price movement just to break even.

Warhammer

What happened to your sol perp James?did you use a sl to confirm your profit ?

BCG

Could it be just a hedge against a much larger put position?

Jay

What does deep out of money mean? Cheap enough to buy or stay away?

Mike Smith

James doesn't recommend deep out of the money LEAPs. It means the option is significantly above the current price. Say it's $700 or $800 dollars per share or something high. The person hopes the stock will go up in price significantly by 2027 so they can make money on the trade.

Nouman

Considering the fact that only 10% of the options contract does get exercised- these traders are not going to wait till the strike date and are likely to flip the contracts as soon as they make a decent profit on them. It’s surprising that James is not pointing out this fact.

InvestorMainiac

Finding option trades... Does anyone know which system James uses to view/find option trades? Has he ever mentioned it. I use optioncharts.io (got the link from Jo Bhakdi's YouTube channel) but I'm sure there are other good alternatives - thanks

Tony Chicago

James can you do a show on options. Specifically on Tesla leaps ? I really need to get more exposure but am afraid to get Tesla leaps without understanding it fully.

Lypto

Hi James, Big fan, never miss an episode, love all the data and wisdom, I am far from an expert but listened to this YouTube channel and have to admit it is a very convincing perspective, I am an absolute Telstra fan but like you, take into account a lot of different perspectives. Whilst not defending this, I found Andreis perspective to be very interesting. I have watched his channel and find that he is ‘reasonable’ with his perspective. I thought the following may be worth ten minutes of your day, interesting perspective https://youtu.be/biyOHYua-1w?si=lENyvC5yCd6zglmU