June 12, 2014 CBOE PMA Brief from Pro Market Advisors
Shawn Howell from Pro Market Advisors brings us Part #2 of his SPX Super LEAPS series. He explains how investors believing the S&P 500 would go higher over the next 30 months could use December 2016 SPX Super LEAPS to take advantage of that opinion. The leverage and limited risk of Super LEAPS are discussed. In Part 3 coming soon, Shawn and Rick Swope will give examples of turning a long Super LEAPS call position into a time-diagonal spread by selling closer in, out-of-the-money SPX Weeklys options to reduce the break-even and overall risk of owning Super LEAPS.