How do short-term options differ from LEAPS?

by Louis Navellier   06/26/08
Email This   Print Page  Tweet This Tweet This

Q: How do shorter-term options differ from long-term options (LEAPS)?

A: You can buy options with expiration dates as near as the same day or as much as 2 1/2 to three years away at any given time. Long-term Equity Anticipation Securities (LEAPS), which are also known as longer-term options, are simply call or put options with an expiration that is several months or even years out. LEAPS expire in January of the coming years and might have a ticker that looks different than their shorter-term counterparts. But other than that, the option contracts behave the same no matter what their expiration date may be.

More By This Expert

Ken Trester

Use Limit Orders on Options Trades

If buying inexpensive options makes you 'cheap,' then profiting from them must make you 'rich'!

Short-Term Gains Using Long-Term Options

Stock options are excellent speculative vehicles and can be inexpensive to boot!

The Thrill of Expiring Options

A diligent trader can make big money buying expiring options. But you have to be ready to move quickly.

How to Initiate a Credit Spread

We'll show you how our subscribers made a $400 return in less than two weeks with this two-step strategy.

4 Factors in Play With Options Trades

Frenzied market activity and volatile price action can be a option trader's friend or foe.