Tag Archives: leap options

Understanding Open Interest in Options Trading

Understanding Open Interest in Options Trading

Reading Time: 2 minutesKeeping Tabs on Open Interest (Or Where Do Options Go When They Die?) As opposed to stocks, which have a fixed number of shares outstanding, there’s no minimum or maximum number of option contracts that can exist for any given underlying stock. There will simply be as many option contracts as trader demand dictates. Remember:

Buying LEAP Options | Long Term Options

Buying LEAP Options | Long Term Options

Reading Time: 3 minutesBuying Leaps Calls as aStock substitute We’ve already warned you against starting off by purchasing out-of-the-money, short-term calls. Here’s a method of using calls that might work for the beginning option trader: buying long-term calls, or “LEAPS”. The goal here is to reap benefits similar to those you’d see if you owned the stock, while