You can grab 100 shares of $AMZN for $25,269 right now. Or you can buy the $260 call LEAP expiring January 2028 for $4,425—same 100-share exposure, 82% less capital, 460+ days of runway.
The setup:
Strike $260, expires January 21, 2028, premium ~$44.25 per contract, breakeven $304.25.
If $AMZN hits $320, this LEAP returns ~36%.
If $AMZN hits $350, this LEAP returns ~103%.
If $AMZN hits $380, this LEAP returns ~171%.
100 shares at $380 would only return ~50%.
Why I like it:
AWS revenue grew 37% to $42.2B last quarter, with $16.6B operating income. Andy Jassy said backlog stands at $496B, growing triple digits year over year. Anthropic committed over $100B over 10 years to AWS. Amazon's in-house chips business passed a $25B annual revenue run rate. Advertising grew 26% to $19.8B. Over 15 months of runway through January 2028.
Max loss is the full premium—$4,425 per contract. LEAPs are leveraged and can lose value fast if the stock drops or stays flat. Only size this so you're comfortable losing it all.
LEAPs are one tool inside a broader portfolio. Owning shares is always the primary use of capital. This is a selective add-on for high-conviction moments when conditions align.
The setup:
Strike $260, expires January 21, 2028, premium ~$44.25 per contract, breakeven $304.25.
If $AMZN hits $320, this LEAP returns ~36%.
If $AMZN hits $350, this LEAP returns ~103%.
If $AMZN hits $380, this LEAP returns ~171%.
100 shares at $380 would only return ~50%.
Why I like it:
AWS revenue grew 37% to $42.2B last quarter, with $16.6B operating income. Andy Jassy said backlog stands at $496B, growing triple digits year over year. Anthropic committed over $100B over 10 years to AWS. Amazon's in-house chips business passed a $25B annual revenue run rate. Advertising grew 26% to $19.8B. Over 15 months of runway through January 2028.
Max loss is the full premium—$4,425 per contract. LEAPs are leveraged and can lose value fast if the stock drops or stays flat. Only size this so you're comfortable losing it all.
LEAPs are one tool inside a broader portfolio. Owning shares is always the primary use of capital. This is a selective add-on for high-conviction moments when conditions align.