I don't quite agree with this buddy's point of view. But what worries me most is that my own understanding might be wrong, so I'm posting it to invite criticism. I believe the truth becomes clearer through debate.

① "Won't double in price." The yield on leaps calls is definitely not as high as near-term ones, but "how much you can make" depends not only on the leverage multiple but also on how much you dare to bet. Leaps calls make people dare to bet big, for no other reason than their long expiration date and almost no time value decay (e.g., 20280121 80 c, time value 36, intrinsic value 29. Such an option still has 600 days to expiry. If it theoretically trades sideways for 300 days, the time value will drop 30%, so the entire option's value only drops 15%. A slight rise will bring it back to the cost line. What about the decay rate of a 2x leveraged ETF in comparison? You can calculate it yourself.)

"The first rule of investment is don't lose money. The second rule is the first rule." When you know what you're doing is low risk, when you're on the side of time, you naturally dare to bet big.

(Besides, Buffett also said, "If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes." A two-year leaps call has little time decay in the first year, theoretically offering the best value.)

② "Poor liquidity." All my options are leaps calls, and I haven't encountered a situation where I wanted to sell but couldn't (unless it's an extremely obscure stock like ARCT). In practice, as long as you pick the midpoint between the buyer's and seller's quoted prices, you can usually sell (I don't know why either, maybe it's due to quant trading? Hope some expert can analyze this. Anyway, when you want to sell, you don't need to sell at the current buyer's price.)

③ "Can't sell putcall either." I didn't understand this one, sorry.

④ "Can't trade in pre-market, after-hours, or night sessions either." This is what I consider the least important... First, you simply can't be sure that your desired lowest/highest price will appear in pre-market or after-hours; second, since you're already using options, which is essentially leverage, "don't try to catch the last penny." Keep a good mindset, making more than the underlying stock is enough. Again, "the first rule is don't lose money."

(Of course, if you say that having to trade after 9:30 affects sleep... I guess that counts 😂)

I'm just a naive investor myself, and I hope everyone will be generous with their advice. Bow 🙇@彩子

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