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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Berk who wrote (24881)	10/5/1998 9:14:00 PM
From: MrGreenJeans	Read Replies (2) \| Respond to of 70976

Options vs Leaps My experience is with normal options not LEAPS but the differences shouldn't be that great The differences are rather significant. Options run for about 9 months or less and Leaps run for about 2.5 years. The biggest difference is one of time value. Obviously, the leaps hold more time value. The other difference is one of price change magnitude. Leaps may not react as fast to stock price changes as shorter term options may due to the relation b/w leaps having more time value and the probability of the price change producing an option being in or out of the money at expiration. Leaps are also more expensive due to greater time value premium.