If $100,000 sounds like a lot, then start with $50,000 or $25,000 and buy fewer LEAPS contracts to get acquainted with how the trading strategy works. Take Boeing (BA) for instance. The company has a virtual monopoly on the commercial airplane business other than its one main rival, Airbus. Boeing shares are in a major bullish trend with order backlog going through the roof. That outlook is reflected in sales and earnings.

On February 1, 2017, with the stock trading at $165, I recommended the Boeing January 2018 $135 Call for $31.00 per contract. We filled that trade. That contract, to be profitable, has to trade at $166 ($135 + $31 = $166). At the same time, I recommended selling a like number of contracts of the Boeing March 17, 2017 $170 Calls for $5.00 per contract, which are about 30 cents away from being executed as of this writing. Shares of Boeing are trading up to $173 as of last Friday.