3X Long Labubu(@labubu_trader):leap calls have better capital efficiency to me, it gives me a similar level of delta exposure but reserves much less capital. So if the market continues the rally, I can enjoy the ride along although less profits. If the market has a sharp selloff then recovery, I’d have cash to buy the dip but with limited loss in the middle. Another important benefit is convexity: Delta shrinks as the stock falls and rebuilds as it rebounds. Only one caveat is don’t buy leaps after the big selloff as the IV would be super high. And the IV would crush along the way when the stock price recovers.

2026.09.24 19:49

leap calls have better capital efficiency to me, it gives me a similar level of delta exposure but reserves much less capital. So if the market continues the rally, I can enjoy the ride along although less profits. If the market has a sharp selloff then recovery, I’d have cash to buy the dip but with limited loss in the middle. Another important benefit is convexity: Delta shrinks as the stock falls and rebuilds as it rebounds. Only one caveat is don’t buy leaps after the big selloff as the IV would be super high. And the IV would crush along the way when the stock price recovers.

显示更多