An examination of index option pricing, volatility and risk along with a comparison of equity vs. index options.

Before you can start trading index options you have to master the underlying.

Like equity options, index options offer the investor an opportunity to either capitalize on an expected market move or to protect holdings in the underlying instruments. The difference is that the underlying instruments are indexes. These indexes can reflect the characteristics of either the broad equity market as a whole or specific industry sectors within the marketplace.

Covered call strategies using LEAPS.

Put strategies using LEAPS.

A look at LEAPS trading strategies…

Understanding LEAPS symbols and Time Erosion vs. Delta Effect.

Exploring the availability and pricing of LEAPS…

LEAPS are simply long-term options that expire at dates up to 2 years and 8 months in the future, as opposed to shorter-dated options that expire within one year.

When considering any options strategy, you may want to think about Long Term Equity Anticipation Securities (LEAPS) if you are prepared to carry the position for a longer term.

Since there are so many available options – and so many ways to trade them – you might not know where to begin. But getting started is easier than you think, once you determine your goals…