Out of My SQ LEAPS

I’m always a big believer is taking profit, especially in times like this. As you know I’ve been collecting up LEAPS positions. Just because I invest in positions that will not expire for 2 years doesn’t mean I’ll hold them for 2 years. One of the great things about LEAPS is the protection you get from buying a long term option as opposed to a short term option. LEAPS will cost a little more than short term options but the protection you receive is enormous.

On 4/2 I bought a 1 contract LEAPS option on Square (SQ). I paid $13 ($1300) and today that option was worth $26 ($2600). This was a 1 month investment and I made a Rate of Return of 100%.

4/2/20 – Buy to Open 1 SQ 1/21/22 $47.50 C @ $13.00 

5/4/20 – Sell to Close 1 SQ 1/21/22 $47.50 C @ $26.00

 Profit +$1300

I like SQ but it did receive a downgrade last week so I figured why not lock in a great return.

This $1300 profit is a nice way to start off a new week. Let’s hope I can have a few more nice profit trades this week.

Successful Trading,

Steve

The Options Coach