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A Short-Term Options Battle: The make or break point for equity traders

Traders Magazine, January 2006

Mark Longo

This month's column is for all the spendthrifts out there. If you're like most equity traders, then your primary focus is on earnings calls, Federal Reserve announcements and other events that can significantly impact your portfolio. While every trading day is important, these are the events that can make or break your year. Unfortunately, when it comes to trading options on these specific events, your choices are limited. Most options are only available in denominations of months or years. That is a lot of extra volatility and interest premium to incur just to trade a single event. However, after decades of ignoring this problem, the options markets are coming to the rescue with a host of short-term products that may forever change the way you look at trading.

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