Sell LEAP Puts to Collect Large Premiums with a Built-In 50%+ Buffer

# Them

LEAP puts are puts with long time until expiration — 12, 18, or 24 months — sold to collect a large premium up front on stocks you would be willing to own. By selling a LEAP put, you receive a bigger premium than with short-dated puts and you create a larger buffer between current price and the short strike before you're at material risk of assignment.

# Angle

Long-dated options behave differently because of their Vega exposure. With extended DTE, Vega takes on greater influence: changes in implied volatility move long-dated option prices more in absolute terms than short-term options. That creates an edge for sellers who understand term structure and where volatility is likely to go over many months.

# Four-Step Selection Process

The article gives a concrete four-step framework for choosing LEAP puts:

• Pick stocks you want to own long term. Selling puts should target names where assignment is acceptable.
• Choose strike distance to create a sizable buffer (examples referenced have 50%+ buffer scenarios).
• Select DTE in the 12–24 month range to maximize premium and exploit Vega term structure.
• Size positions relative to cash and portfolio risk, treating them as potential future purchases of the underlying.

# Live Trade Examples

Five live trades are presented to show the framework in practice: Coinbase (HOOD), Robinhood, SoFi, Tesla, and NVIDIA. The walkthroughs explain how the author selected strikes and DTE and how those positions connect to a longer-term wheel approach (selling puts with the intention of either collecting premium or being assigned stock to sell covered calls later).

# Wheel

# Risks and Management

The piece emphasizes real risks: assignment at expiration or early exercise, significant underlying declines that exceed the buffer, and volatility regime shifts that can widen mark-to-market losses. Management techniques include sizing conservatively, planning for assignment, and understanding how to roll or adjust positions over many months.

# Resources and Tools Mentioned

The article links to practical tools and guides: a credit spread/P&L calculator, an option wheel tracker spreadsheet, a wheel eBook, and other educational pieces (iron condor course, options basics guide, volatility and Greeks explainers). Timestamps in the source map the video: definition, Vega edge, HOOD example, selection process, live trades, long-term wheel, and risks.

# Practical Bottom Line

Selling LEAP puts is a deliberate income strategy for investors who want to own specific stocks or capture larger premiums with a big buffer. It requires attention to implied volatility term structure, conservative sizing, and contingency plans for assignment or large market moves. The article demonstrates the approach through specific trade examples and provides tools to implement and track the strategy.