INTRINSIC: Using LEAPS to Retire Early

by Mike Yuen

What if you had more time to do what matters most in life. Learn how to beat the market using options LEAPS and retire early.

AWARDS
2021 American Book Fest Best Book Award - Finalist
2021 Axiom Business Book Award - Silver Medal
2021 Independent Publisher Book Award (IPPY) - Gold Medal
2021 International Book Award (IBA) - Winner
2021 Readers' Favorite International Book Award - Bronze Medal

AMAZON CUSTOMER REVIEWS - Verified Purchase
★★★★★ "Most valuable investing book on investing I own" - N. Armstrong
★★★★★ "Intensely factual and pragmatic resource" - bearkill
★★★★★ "Financial chicken soup for the soul!" - kaicat

BOOK DESCRIPTION
The clock is ticking for all of us. There are only 24 hours or 1,440 minutes available in a day—life’s common denominator shared by all humans. Have you ever imagined what you would do if you were able to achieve financial freedom, retire early, and spend more time with who and what mattered most to you in life?

In January 2017, that’s exactly what INTRINSIC author Mike Yuen was able to do. Today, he spends his days with his family, and it has been priceless. Trading options LEAPS (Long-term Equity AnticiPation Securities) in tech stocks such as AAPL, AMZN, FB, MSFT, and NFLX is what made this possible. Since retiring, using nothing more than simple calls and puts (no spreads, collars, straddles, strangles, or other more advanced options strategies), his portfolio has produced an annual return which has outperformed the S&P 500, Dow, Nasdaq, and Nasdaq 100.

Options LEAPS are powerful financial instruments. Not only can they help you attain your financial goals, but they can also accelerate them. Only about 10% of all options trades are LEAPS—they're not commonly used. Keith Gill (aka DeepF-ckingValue of Reddit WallStreetBets) initially used LEAPS in his now-legendary GameStop options trade where he turned $53,000 into millions of dollars. Mike Yuen also uses LEAPS, but in a much 'safer' way for the average retail investor.

In his book, Mike Yuen reveals how he beats the market and makes money trading options LEAPS, and you don't have to be a professional trader either. Perhaps what worked for him in the past, and still works for him today, might work for you too!

270 pages, Paperback

Published December 18, 2020

About the author

Mike Yuen previously worked in the wireless, consumer electronics, video game, and semiconductor industries at companies such as Qualcomm, Zeebo, GTE Interactive Media, Accolade, and Advanced Micro Devices. He holds a BA in Computer Science from John Muir College at UC San Diego and an MBA from the Graduate School of Management at UC Davis. He lives in Carlsbad, California, with his wife and son.

Reviews

[Brian · Rating 3 out of 5]

2 stars as a book. It was not well written - repetitive, endless detail when charts would have more easily conveyed the info, lots of commentary on a small number of mega-cap tech companies stock movements from 3 years ago, copy and paste of content in 3 places, use of acronyms when words would have been better, filler chapters chronicling the authors personal journey, etc. If I didn’t already have a strong understanding of trading stocks, this book would have been unreadable. Thankfully I knew when to skim.

But the essence of the authors guidance is to buy Deep In the Money (ie $10 or more) LEAPS (call options with 2-3 years til maturity) with a break even (ie premium plus strike price) no higher than 5% of the stock price. Then wait. The gain from buying the LEAPS will move in line with the underlying stock, but the leverage from the option will magnify your ROI (ie same return for less dollars).

Importantly, the book has given me the confidence to try LEAPS trading. For that, it is worth extra stars.

I will set up a spreadsheet and look to try this tactic. Hoping that the profit from this strategy far exceeds the cost of this book.

[Martin · Rating 4 out of 5]

Very clear and easy to read summary of how to use LEAPs as a capital efficient strategy to amplify long equity investments. Clearly still requires careful investment selection. Bonus points for clear and simple explanations of the Greeks and types of technical indicators (- even though the author doesn’t recommend their use), and examples of trades including comparisons of performance with a “pure” stock investment.

I wouldn’t say this is a total beginner book but a simple, actionable strategy and worth a read once you have a decent grasp of the financial markets and want to add to your investment strategy repertoire or more focused investments vs DCA or “invest and forget”

[Kamil · Rating 4 out of 5]

Good learning. Could be much shorter. The first half of the book could be covered in 30 pages as there is too much repetition.The last section has all the meat. Bottom line worth a read and just ignore the repetition

[R Baxter · Rating 5 out of 5]

Confirmed a lot of my thoughts and suspicions of options trading. Definitely some new strategies to employ.

[Kurt · Rating 3 out of 5]

Well written and inspiring (retiring early). Basically the point of the book is to buy leaps on tech stocks. Doesn't really matter when.

[Juozas Šalna · Rating 2 out of 5]

So much useless filler in this book. But the message is clear and simple.

[Jermaine Filmore · Rating 5 out of 5]

Excellent book for long term investors! -Jermaine Filmore

This excellent book explaining options and Long-Term Equity Anticipation Securities (LEAPS) was recommended by Mark Monroe (@iammarkmonroe) from The Come Up Series, which is dedicated to helping other build generational wealth and teaching you about the stock market, economics, entrepreneurship, startups, trading, and more without spending a penny.