Question:
How much do I need to start trading Equity LEAPS.
Solution:
If you intend auto-trading then given the commission structure we suggest allocating a minimum of $3000 per position and in addition hold back 5% of capital for management trades, this holds true for any of our 4 services .
With the Equity LEAPs serive we suggest holding a minimum of 7 positions at any one time to ensure diversity across the portfolio. This equates to $21k with an additional 5% for management moves giving a minimum starting capital for this service of $22k.
The minimum starting capital for the other 3 services is Index LEAPs $9.5k, Covered Calls Conservative and Aggressive $12.5k.
You can, of course, allocate more capital to each position if you have it available.
If a customer intends to self-trade and use a discount on-line broker such as Interactive Brokers then the amount per position can reduce to $1500.
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