I'm anticipating buying LEAPS sometime in the next 1-2 weeks. Likely targets are BRCM, LSI, NT, ORCL, and QCOM.
As a novice, some basic questions:
1) Last two V bottoms have been very rapid, and I have found it difficult to buy stocks rapidly enough near bottom. Given modem access and standard on-line brokers, what is the best way to approach buying LEAPS on 5 different securities in a fast moving market? I am thinking of trying to buy those LEAPS that are most heavily traded, so that executions will be rapid. Based on stocks, when trying to buy a basket of positions in a fast market, it is best to just put in market orders and take your lumps on fills. True for LEAPS as well?
2) Based on what I have read, there seem to be two basic approaches to buying LEAPS- buy ITM as an investment OR buy deep OTM but far out as speculation. I am favoring buying Jan 2002 to lessen time decay which seems to seriously kick in at about 8 months from expiration. This is where I am unsure of what to do- is there a reasonable middle-of-the-road strategy of buying 10-25% OTM LEAP calls? Or am I missing something basic here? |
