How I Buy LEAPS | Picking stocks like a Pro

Finance-Focused Strategy Overview (LEAPS + “Dynamic Poor Man’s Covered Call”)

What the strategy is

• The speaker primarily uses LEAPS to sell covered calls dynamically, rather than using a static rule (e.g., “always sell 30-delta calls”).
• Strike/positioning changes based on market “regime” (market mode), aiming to:
  • collect option extrinsic value
  • benefit if the underlying drifts higher
• The approach is explicitly income-focused; any price appreciation is treated as a bonus.

Underlying selection preferences (ETFs > single stocks)

• The speaker does not like holding individual stocks and states they do not own individual stock positions—they use options only.
• Preferred underlyings mentioned:
  • ETFs: QQQ, SPY
  • Gold (no specific ticker named)
• Rationale for avoiding stocks:
  • earnings/news/geopolitical events can cause sharp adverse moves (example cited: Meta and SoFi after-hours selloffs).

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Entry / Technical Screening Framework (Step-by-Step Criteria)

1) Trend filter (non-negotiable)

• Underlying price must be above the 200-day moving average
  • ideally on the weekly chart
• If not above the 200-day MA: “non-starter.”

2) Weekly momentum structure

• Prefer higher highs and higher lows
• Ideally: 8 EMA > 21 EMA (on weekly)

3) RSI condition

• Prefer RSI < 50 (avoid chasing when RSI is ~60–70)
• Want RSI to be:
  • above ~35
  • rising
  • not in “freefall”

4) Volatility / beta avoidance

• Avoid high beta names:
  • beta > ~1.0 (more sensitive than the S&P)
• Goal: avoid “heart attack” volatility and target steadier drift.

5) Options market quality

• Require:
  • tight bid-ask spreads
  • good open interest
• Purpose: reduce slippage risk from wide spreads.

6) Fundamental growth thresholds (minimums)

• Revenue growth ≥ 20% YoY
• EPS (earnings) growth ≥ 20% YoY
• ROE ≥ 15%
• Mentions free cash flow stocks are acceptable but not the primary screen.

7) Timing / when to enter

• Enter on a pullback toward either:
  • the 21 EMA, or
  • the 50 EMA (if possible)
• Emphasis on patience:
  • great strategy + bad entry = poor results
• Opportunity cadence:
  • for liquid ETFs like SPY, the speaker suggests an opportunity may appear about every 1–2 months
• Time horizon:
  • described as ~12-month trades (longer than 30–60 days)

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Examples / Tick ers Mentioned

Individual stock names evaluated (often “watch,” “maybe,” or “too far gone”)

• GE (GE Aerospace)

  • broke down with 8 below 21, but still uptrending
  • pullback to 50 EMA could be a good spot

• Newmont Corporation

  • above 200-day
  • 8 above 21
  • pullback to 21 EMA → “keep an eye on”

• Corning

  • “looks great”
  • pullback not enough yet; wants pullback to 21 EMA

• Sea Limited (SEA)

  • technicals not ideal (8 below 21, below 200)
  • speaker prefers waiting

• Intuitive Surgical

  • weekly looks “sideways” → not preferred

• Palantir

  • considered high beta
  • above 200-day, but 8 below 21 → may require more patience

• Brookfield Asset Management

  • “No, not here.”

• AppLovin (AppLovin / “APP”)

  • descending triangle breakout potentially leading to “violent” upside

• Lam Research

  • needs more pullback
  • “looks good” after additional pullback

• Vertiv (VRT)

  • “too far gone” now (too far above 8)
  • last good entry around December
  • setups may come every 4–5 months on some names

• Arista Networks

  • too far gone currently
  • earlier pullbacks to referenced moving averages (e.g., 150 MA/EMA and 50) as prior opportunities

• Broadcom

  • flagged as high beta (caution)
  • notes past entries near the 50 EMA

• Nvidia

  • too far gone currently
  • prior opportunities 3–4 weeks earlier

• Micron

  • too far gone currently
  • prior pullback entry ~4 weeks ago

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ETF examples with actual strategy positioning

QQQ trade

• Implementation mentioned: synthetic long with a protective put (described as an alternative/low-cost method)
• Cost example: $3,600 to get exposure to 100 shares of QQQ
  • narration includes minor inconsistencies (references like “$5,300” / “$3,500”)
• Results:
  • strategy/trade: up 234%
  • underlying QQQ: up 16%

SPY trade

• Time horizon: about a year
• Entry date given: 4/22 of last year
• Underlying performance:
  • SPY up 35% since entry
• Strategy performance:
  • trade up 130%
  • >$17,000 profit
  • current basis stated around ~$13,000

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Key Quantitative Targets / Performance Claims

Track record / performance claim

• “Up over 20% on the year in the first 4 months.”

Screened-name fundamental thresholds (as stated)

• Examples passing the fundamental screen had:
  • ≥20% revenue growth
  • ≥20% earnings growth
  • ROE ≥ 15%

Strategy performance examples (as stated)

• QQQ: +234% strategy vs +16% QQQ
• SPY: +130% strategy vs +35% SPY
  • >$17,000 profit
  • basis ~$13,000

Course/ROI expectation (marketing-style statement, not verified math)

• “Pay off … likely in the first 10–20 weeks.”
• Mentions outcomes like $15k–$20k on larger capital
• Then frames “invest a thousand bucks” as a possible ROI catalyst (no verified math provided in subtitles)

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Risks / Cautions Explicitly Mentioned

• Avoid wide option bid-ask spreads
  • slippage can “silently kill returns over time”
• Avoid high beta names to manage volatility
• Avoid poor entries
  • setups may take weeks/months to work
• Event risk (earnings/news)
  • cited as a key reason to avoid individual stocks

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Disclosures / Disclaimers

• The speaker says they “always love to be transparent” and show both wins and losses.
• No explicit “not financial advice” disclaimer appears in the subtitles provided.

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Tickers / Instruments Mentioned

ETFs

• QQQ, SPY

Stocks (examples mentioned)

• Meta
• SoFi
• Nucor (spelled “Nucor” / “new holdings” in subtitles)
• Sea Limited (SE)
• GE Aerospace (GE)
• Intuitive Surgical
• Palantir
• Newmont Corporation
• Corning
• Brookfield Asset Management
• AppLovin (“APP”)
• Lam Research
• Vertiv (VRT)
• Arista Networks
• Broadcom
• Nvidia
• Micron

Other

• Gold (no ticker given)

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Presenter

• Unnamed speaker/trader (no name provided in subtitles)
• No external sources cited in the provided text