Wanted to share a trade that's working out
well in case it helps anyone here.
THE SETUP
Stock: $NOW — ServiceNow
Entry price: $87
Strategy: $120 LEAP Calls
DTE: 310 days
Cost: $980 per contract
THE REASONING
High quality SaaS business that had pulled
back significantly from its highs. Strong
fundamentals, sticky revenue model and
plenty of time for the thesis to play out.
The $120 strike gave the stock room to move
without paying through the nose for premium.
WHERE IT IS NOW
That contract is now worth over $3,000.
Still holding. Here's my targets 👇
If $NOW hits $200 by expiry:
— Contract value = $8,000
— Profit = $7,020
— Return = 716%
If $NOW hits ATH at $240:
— Contract value = $12,000
— Profit = $11,020
— Return = 1,124%
MY LEAP CHECKLIST
For anyone wanting to use a similar approach:
1. High quality company with strong fundamentals
2. Significant pullback from highs
3. Strike price that gives the stock room to move
4. Minimum 6-12 months DTE — never rush LEAPs
5. Never risk more than 2-3% of your account
6. Know your exit before you enter
The biggest mistake I see with LEAPs is people
panic selling too early. The whole point is
giving yourself time — use it.
Happy to answer any questions below.
Not financial advice. DYOR.