I Just Bought a Bitcoin LEAP — Here's the Full Breakdown

I just entered a trade on IBIT (the Bitcoin ETF), and I want to walk you through exactly why I did it, how I priced it, and — most importantly — what my plan is if I'm wrong.

I bought the IBIT June 2028 $20 call and paid $22 for it. It's a deep in-the-money LEAP with a delta of 88, which means it moves almost point-for-point with the underlying.

So why a LEAP instead of just buying the stock?

Here's where it gets interesting. If I buy stock outright, I'm paying $36.50 per share and my downside risk is... well, all of it. With this LEAP, my max loss is capped at $22 — the premium I paid. That's my entire risk, defined from day one.

My breakeven is $42 (strike price + debit), which is about 15% above the current price. So yes, I'm giving up 15% of upside compared to owning stock. But in exchange, I'm getting significantly reduced risk and a lot more flexibility.

Now let me show you why the flexibility piece is so powerful.