4. options trading strategies

Short-Term Options vs. Long-Term Options

Short-term and long-term options are the same thing, but with different expiration timelines. Many traders consider options maturing in the next few weeks to be short-term, and further dates to be long-term.

Short-term option prices typically follow the current stock or asset price very closely, while longer-term options may vary more as investors expect the stock to go up or down. Each has different risks, so it’s important to consider the potential upside and downside before buying options.

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