Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance This year in The War Room, we have closed out multiple LEAP spread trades for double and triple digit gains. Some of those wins include a 59.43% gain on Raytheon (RTX) in 143 days and a 105.13% win on Bank of America (BAC) in 287 days. Most recently, we closed out RILY for a 128% gain in 143 days. If you're not using LEAP spreads, you really should take the time to explore this strategy. LEAP Spreads in a Nutshell Simply put, a conventional spread is the distance between two points. In the options world, it is the distance between two prices. For example, in the RTX trade I mentioned above, we bought the $80 calls and sold the $95 calls against our position. At the time, RTX was trading in the $80s. But, because it was a LEAP spread, we had oodles of time on our side. We took the spread route because the options were very expensive. By using a spread, we reduced our cost significantly, reduced our break-even point and increased our chance for success. But, we also limited our upside as a result. Remember, nothing is free on Wall Street! If you want to reduce your risk, you will reduce your return as well. In this case, we risked $7 to make $15. The $7 was the difference in price between the $80 calls we bought and the $85 calls we sold. Instead of waiting until expiration, we sold the spread for over $11 to lock in a gain of almost 60% quickly. Then we rolled those profits into another spread strategy that I use. This strategy also requires the buying of one option and the selling of another option. But, there is one major difference. The options that I buy and sell have two different expiration dates but the same strike price. This trade is called a calendar spread. Let me explain. | 
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