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You could buy 100 shares of $HOOD right now for $8,000.
Or you could buy the $80 call LEAP expiring June 2027 for $2,600. Same directional exposure. 67% less capital. Over a year of runway.
The trade:
Strike: $80
Expiration: June 17, 2027
Premium: ~$26.00 per contract
Breakeven: $106
If $HOOD hits $120, this LEAP returns ~54%
If $HOOD hits $140, this LEAP returns ~131%
If $HOOD hits $160, this LEAP returns ~208%
Buying 100 shares at $80 and watching it hit $160 is a 100% return. The LEAP more than doubles that.
Why I like the setup:
- Q4 revenue hit $1.3B, up 27% YoY
- Platform assets grew 70% YoY to $324B
- Gold subscribers at 4.2M, up 60% YoY
- $1.5B share buyback authorized
- Q1 earnings on April 28 - next catalyst
- Expanding beyond trading into banking, retirement, and crypto infrastructure
- 428 days to expiration gives the thesis time to play out
The max you can lose on a LEAP is the entire premium you paid. In this case, that's $2,600 per contract. LEAPs are leveraged and can lose value quickly if the stock drops or stays flat. Only size this so you're comfortable losing all of it.
Note: LEAPs are one tool inside a broader portfolio. Owning shares is always the primary use of capital. This is a selective add-on for high-conviction moments when conditions align.
NFA DYOR
This $BIRD pivot is truly mind-blowing to me.
At this point it feels like $BYND is about couple months away from ditching fake meat and pivoting to AI compute 😆