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This is a tutorial based on my personal approach. Results vary widely, and nothing here guarantees profits or future performance. Welcome to the show "Trading with Ashley" . This video will really help those of you who have been watching me for the past few years learn how to get into the jumps game incredibly quickly.
We are getting dangerously close to the point where I actually want to invest a significant amount of money in two-year jumps. I'll walk you through everything I'm considering. I'll walk you through when I'm going to pull the trigger. Now, for those of you who want to know, have some level of confidence about when to do this, you really need to stop what you're doing right now if you're watching this in the morning and sign up for the masterclass we're doing in a few hours with "Promotions with Josh." Josh and I teamed up, and we created an incredible class to teach you how to chart any stock, any index, and look at where they're potentially going to go and where they're potentially going to bounce.
This will give you a level of confidence to actually start trading. I have picked up a potential deal that will offer excellent returns for those who are able to understand it and dive into it. We'll teach you everything you need to know, but you must follow the link below and get to class before it starts at 4:00 PM Eastern Time today.
If you do this, you will receive a recording even if you cannot be there. But if you miss it, you just miss it. We will do other classes together, but nothing like this. Feel free to book your place now. Now let's take a closer look at what I want to share with you . When you buy a Leaps option, my backtesting has shown that you get the best results when you enter the market within 2 years when the RSI for the major indices is around 35 or below.
That's what I'm going to tell you today. I'll show you which Leaps options I'll choose and even tell you how much it will potentially cost. Whether you choose a one-year or two-year jump, this will help you because you can plan to raise the funds you may need to participate in this incredible deal, which back-testing shows really works.
Let's go over the details so you're ready when the time is right. That's what I wanted to show you visually. Do you see smiling faces? I smile because that's when I bought Leaps stock. When everyone else was afraid, I went out and did this shopping. Of course, I warned my community, and they were also able to join in on these deals.
You can see it here in April. That's when the fare sale took place. That's when I used most of my money that year. And I was very lucky. I was able to make over $300,000 in profit by investing a significant amount of money in the market by buying Leaps shares at this stage. Then I sold all these stocks with a profit at that level.
Then, when everything started going down again , we had this peak right here. This was recently and I actually made a YouTube video about it and I actually warned all of you that I actually bought other leads. That's when I invested another significant amount of money, and I have a large profit from many of them.
I actually sold a lot of them right here at the top when I saw so many weeks in a row of green, and now I'm saving money again. Let me show you what I will be looking at when I decide to go further and invest another significant amount of money in these 2-year jumps. Now I want to invite you to Yahoo Finance, and I'll show you where I put my money last time, looking at this chart, and where I'm going to go again.
Let's look back here, to March of last year. That's when I invested the most money in my lead position. You can see that we were trading below the 200- day moving average, and we were there for a while. You can see right here, we've dropped below the 200-day moving average. It seems like we didn't get out of this dynamic until early March until May.
But that's when I did most of my shopping. Then you can see right here, we were trading below the 200-day moving average. We went down below right here. It was in that March period that I shared with you, and I went ahead and invested cash here. So let me show you where we are now. This is where we are now .
I'm going to zoom in so you can see it better . But what I'm looking at is not so much where we are right here in the Ballinger Bands, or even where we are with the 200 -day moving average. I'm looking right here at the RSI. We are currently at 42. Now, if the market continues to break down and we have some really red days next week, it will likely drop to my target of 35 or below.
And it usually stays low. You usually see it stay at 35 and then drop to 30, and then I put money in whenever it is 35 or below on the major indexes. If that happens, I don't know if we'll reach the 200- day moving average. Maybe so, but I think we'll get to at least this area. And so that's when I'll invest more money.
Let me show you the exact deals I'm looking at and how much they'll likely cost at the time I make the purchase. Now, if the market turns green, I will have to wait for the setup I am showing you, but you will be ready either way. Now I'm in the options chain. Traditional LEAPS happens after a year or so, but because of how expiration dates work , the best I can do in this scenario is look at 334 days.
This is 617 out of 2027. This is now considered close to a year's rent. I'll show you two of them. I'll show you this one, and I'll show you over 2 years, and you can compare the difference. I'll even show you the potential cost. So, I think you'll be very happy to see the potential here. I'm anchored here at this $700 strike .
Right now the delta is about 60, right here, 0.59. I like this because you get a really good risk-reward ratio when you try to stay between something like 6 and 7. But if you notice, there are a lot of open positions here. That's a nice round number of 700. So I think a lot of investors who want to buy these products will be looking here at around the $700 level .
So if you bought this today, you would probably pay about $8,000 for it, which is fine, but I want you to pay attention to this delta. If we have the pullback I expect, and we pull back, say, another $15 in the indices, when we hit my trigger, something that's worth $80 now will likely be worth about $72 a share.
So, if I want to invest in this deal, I will need between $7,000 and $7,500 for this deal. That's a lot of money. But let me show you how much it could potentially cost if we reach the levels that I think we will reach in the indices in a year. If we zoom in a little bit, this $700 here that was worth it today is not the price that I listed here.
I adjusted this to account for if it were actually $7,200. Now, if I make this purchase, let's see what it can become. $800 is a potential target for signals over time, and we will reach new all-time highs. This will most likely happen around this time period. So, this purchase today will give me about 81% of my money back if we reach that $800 level.
What does this mean in dollars and cents? What I paid $7,200 for in the coming weeks could potentially net me another $5,858 in a short period of time either by the end of the year or early next year if we hit that $800 level on the signals. So, here it is . An investment of $7,200 could earn me about $5,800 in profit in this short period of time.
I played for LEAPS all year , but most likely if it happened, it would happen in the second half of this year or early next year. Now let's consider a jump that expires in the summer of 2028. We'll go right here. This is almost 700 days later. And this is what my testing on the way back showed , and it was so fruitful.
The reason these two-year jumps work so well is that they can handle market ups and downs without dramatically disrupting the trade. When you plan a year's worth of sales, that's still quite a long time, but there's a greater risk of a downturn in the coming months. Even though the jump is going this far, I can just sit back for a lot longer and let the market do what the market is going to do.
I like this $700 strike, even though we plan on selling for a few years. Currently, the delta is around 0.65. This is a really good middle ground for buying these options. There isn't a lot of open interest and volume right now, but that's okay. Enough for me to get a really good deal. That would currently cost me about $126 per share.
So, $12,600. But remember, I'm not buying this today. But if we get that drop to around 680, it will become cheaper. How much will it cost? Well, for this, to do the calculation, I use delta. She shows me how much of a difference every dollar makes . So, if we get back to around the $680 mark, what cost me $126 today will be almost $1,000 cheaper and will cost me around $116 per share.
So instead of 12,600 I'll most likely pay around 11,600 for this deal. How much will this deal cost if the price increases to 800 ? Let's say by the middle of next year, that is, in about a year. Here are the jumps for 2028. Regarding this, I'm actually looking at the 851, 850 level because there's more time for it to potentially go up.
I'm looking right here, in June- July 2027, to potentially cash it out. So, that's what I want to focus on. If you see $851 here , if we sold that in that time period, that would give us about a 70-75% profit, which is really significant for something over the course of one year. Now let's see what this means for you in dollars and cents.
If the price reaches around 850 in a year, in June or July 2027, and I make this purchase in the coming weeks, I will pay $1,625. But listen, I'll make about $8,500 if I can cash it out in about a year. Now, as you can see, it loses value over time. And the reason for this is that if the signals just stay the same, then time decay starts to eat away at your trading.
That's why I don't keep them until they expire . But the reason I'm doing two years again is to have more time to be right. I hope you found this helpful. Don't forget to take your seat in class tonight . I can't wait to chat with some of you in person. Josh and I are going to do a question and answer session, so we'll help you with anything you need help with.
It's always interesting to get an idea of how we think. We're very excited to start talking about this, and you can be in the front row.
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