Exchange Currency

long-dated option

A type of strategy option with an expiry date in excess of 2-3 years. However, it used to be referred to as an option with an expiration date of more than a year. This option is usually used to reduce the risk of investing in stock options. It is also known as LEAP (long-term equity anticipation security). Opposite to this option is the Short-date option, which has a lower implied volatility.

Related information about long-dated option:
  1. What is long-dated option? definition and meaning
    Definition of long-dated option: A type of strategy option with an expiry date in excess of 2-3 years. However, it used to be referred to as an option with an ...
     
  2. Long Dated Option
    Traditionally, any option with an initial life of more than a year. Today, the term is usually reserved for instruments with an initial life in excess of two or three ...
     
  3. The Virtues of Long-Dated Call Options | eHow.com
    Any option with an expiration date one to three years in the future is considered a long-dated option. Such options offer attractive characteristics for investors.
     
  4. Buffett cleans up on derivatives bet - Street Sweep: Fortune's Wall ...
    Feb 26, 2011 ... Buffett says he cannot reliably come up with a pinpoint value for any given long- dated option, but adds that he would "rather be approximately ...
     
  5. Scalping Gamma | SurlyTrader
    Jan 19, 2010 ... A long dated option has a lot of vega exposure but little gamma exposure whereas a short dated option has a lot of gamma exposure and little ...
     
  6. Risk Latte - Volatility and Long Term Options
    Mar 7, 2005 ... Further, if the implied vols were used how the skew could be taken into account for such a long dated option. Finally, he realized that the single ...
     
  7. European option pricing with transaction costs - Department of ...
    particular, the authors show that, for a long dated option, the writer must charge a premium over the. Black-Scholes price that is just equal to the transaction ...
     
  8. Stocks vs. Options: Which Vehicle to Use? « Journeys of a Bumbling ...
    Mar 22, 2011... of 1 year at one shot for a long-dated option. Note that the more volatile the stock, the higher the “roll over” cost due to wider bid-ask spread.