Long-Dated Option

Business, Legal & Accounting Glossary

Definition: Long-Dated Option


Long-Dated Option


Full 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 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.


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Definition Sources


Definitions for Long-Dated Option are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.