Deep ITM LEAPS Strategy: How 50 Percent Becomes 109 Percent?
Most traders buy a hundred shares and never do the math on what they are actually paying for. Ten thousand dollars of stock. Full risk on every dollar. And a return measured on money you did not need to spend in the first place. Owning the shares feels like the only way to own the stock. Except, this is not true. In this video I break down how one deep in the money call replaces 100 shares for less than half the money. You will see the full math on a $100 stock why a 90 delta option moves like the shares while time decay barely touches it and why the worst case loss is a number you know before you enter. You will get the seven rules for buying these options the right way from picking the delta zone to sizing the trade like the shares it replaces and where the money you saved should actually go. I will show you the scan I built for myself inside Option Samurai to find deep ITM calls and how to manage the position when it wins by rolling the strike up locking the profit with a put or doing nothing on purpose and when it loses with one question about your original thesis. Finally you will see the same map flipped with deep ITM puts and why the short squeeze math that keeps most traders away from bearish trades does not have to apply to you. In this video you will learn 1 Why one contract at 90 delta replaces 100 shares for less than half the money 2 The seven rules for buying deep ITM options and why position sizing matters more than strike selection 3 How to scan for deep ITM calls inside Option Samurai with your own delta breakeven and max loss filters 4 Three ways to manage a winner roll up lock the profit or do nothing on purpose 5 How deep ITM puts flip the whole map for bearish trades with a capped loss and no squeeze math ⸻ About Option Samurai Option Samurai helps you find better trades faster. Our scanner and Excel plus Google Sheets integrations are built for serious options traders who want clarity speed and an edge. The scan shown in this video runs live inside the platform with the exact filters from the video so you can find deep in the money calls and puts that fit your own rules before you commit capital. ⸻ 🚀 GET STARTED 🌐 Try it free: https://optionsamurai.com ⸻ 👍 Like this video if it helped you 🔔 Subscribe for more options trading strategies and tools 💬 Comment which strategy you want us to cover next - we read every one and plan new videos from them ⸻ Chapters 0:45 What "deep in the money" actually means 1:05 The math justifying the trade 3:29 The 7 rules for buying deep ITM options 5:01 What the money you saved can do (and the leverage question) 6:02 The scan inside Option Samurai 6:57 Managing a winner 9:09 Managing a loser 10:03 The bearish flip: deep ITM puts
