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Can't you get options whose expiry is a year or two out (LEAPs), or is the time premium not worth it?
by yasp 7y ago
Can't you get options whose expiry is a year or two out (LEAPs), or is the time premium not worth it?
- deleted 7y ago[deleted]
- soVeryTired 7y agoI never traded long-dated options when I was in finance, but anything with longer than a three-month maturity was crazy expensive in terms of the spread you'd pay. These are not liquid instruments. It's been a while since I've done the maths, but I'm pretty sure it'd be cheaper to buy shorter dated puts and roll them over on expiry. Which would still be very expensive.
- maxxxxx 7y agoI used to do options in the end 90s and back then long term options were crazy expensive. You need a lot of capital for such a strategy.
- teambayleaf 7y agoDid you profit from that strategy?
- maxxxxx 7y agoI lost money. Which would make a successful startup these days :)