Well, a new options cycle has opened up, for Aug ‘07. There are always four months trading in equity options, 2 near-term and 2 far-term expiration months.

Originally , there were three option cycles for option expiration, which traded out 9 months.

JAJO - January, April, July, and October
MJSD - March, June, September, and December
FMAN - February, May, August, and November


But people found that boring and wanted more chances to trade. So the CBOE, a ‘friend’ of traders decided to also have the near two months trading.

Take AAPL (Apple Computer ) for example, it has option expiration for Jul 07 , Aug 07 , Oct 07 and Jan 08. Jul 07 and Aug 07 are the nearest two months, while Oct 07 and Jan 08 are from the JAJO expiration cycle. I always use AAPL for my examples, but hey , I love the stock.

Now on to Equity LEAPS, or Long-term Equity Anticipation Securities. All equity LEAPS contracts expire in the month of January. The expiration date is the Saturday following the third Friday of the expiration month.

So AAPL LEAPS run Jan 2008, Jan 2009, and Jan 2010.

Disclaimer : I do not own AAPL shares at this time.
The glider in the picture is a two seat T31 glider once used by the RAF and Air Training Corps.

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This entry was posted on Tuesday, June 19th, 2007 at 10:12 am and is filed under AAPL, Option Trading.