by Louis Navellier 06/26/08
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.
Sam Collins
FAST is now consolidating and recently flashed a buy signal from our internal indicator.
Options Expiration Adds Volatility
The opening looks to be higher but today is options expiration day, and anything could happen.
Chances are high stocks will sell off further, but be alert for a dead-cat bounce after such a dramatic breakdown.
Traders and longer-term investors should sell any new positions at the first opportunity and short ETFs on a temporary recovery in the market.
CAT, the blue-chip of its industry, is the first to attract attention when it's time to dress up a portfolio.
