imported post
Duke, it seems like every time I mention or post historical data that shows a trend, it goes the other way on me so I've been a little hesitant lately to post it.
You can usually buy options up to several months before they expire. Options that are for longer term,up to many years, are called leaps. People buy options for different reasons. Some to "bet" on a stock or index going up or down, some use it to hedge stock positions in case of a move against them (i.e.: Buy 1000 shares of IBM and 10 contracts of IBM puts. If the stock tanks, the options value goes up.)
I hope I answered your question.
Tom
Duke, it seems like every time I mention or post historical data that shows a trend, it goes the other way on me so I've been a little hesitant lately to post it.
You can usually buy options up to several months before they expire. Options that are for longer term,up to many years, are called leaps. People buy options for different reasons. Some to "bet" on a stock or index going up or down, some use it to hedge stock positions in case of a move against them (i.e.: Buy 1000 shares of IBM and 10 contracts of IBM puts. If the stock tanks, the options value goes up.)
I hope I answered your question.
Tom