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:
- 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 ...
- 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 ...
- 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.
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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 ...
- 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 ...
- 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 ...
- 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 ...
- 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.