How do short-term options differ from LEAPS?

by Louis Navellier   06/26/08
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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.

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