LEAP Options

Choosing a LEAP Strike Price

The strike price determines how much of a LEAP's premium is intrinsic versus time value, which in turn affects cost, delta and how far the stock must move.

Strike choices compared

  • In-the-money: higher cost, higher delta, behaves more like stock
  • At-the-money: balanced cost and sensitivity
  • Out-of-the-money: cheaper, lower delta, needs a bigger move

Match strike to plan

Record why you chose the strike. Reviewing that reason after the trade is one of the fastest ways to improve contract selection.

SwingLEAP is a planning and record-keeping tool. It does not recommend trades, predict prices, or execute orders.

Related Academy guides

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