{"id":64036,"date":"2025-10-14T12:19:42","date_gmt":"2025-10-14T10:19:42","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=blog&#038;p=64036"},"modified":"2025-10-14T12:59:52","modified_gmt":"2025-10-14T10:59:52","slug":"does-it-make-sense-to-trade-long-dated-options","status":"publish","type":"blog","link":"https:\/\/www.captrader.com\/en\/blog\/ist-es-sinnvoll-langlaufende-optionen-zu-handeln\/","title":{"rendered":"Does it make sense to trade long-dated options?"},"content":{"rendered":"<p class=\"wp-block-paragraph\">Options trading is all about timing and strategy - but one question concerns almost all traders equally: Which term should I choose? Short-term options offer the lure of rapid time decay, while long-term contracts promise calm and stability. But which option really suits which goals, and where are the opportunities and risks? In this article, we take a closer look at long-dated options, known as LEAPS, and show how they compare to short-term contracts.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The \u201esquare root rule\u201c - price development of options<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The so-called square root rule states that it takes about four times as long for the price of an option to double. Example: An ATM put option with a term of 90 days costs $16. According to the rule, an option with a term of 360 days would have a price of:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"346\" height=\"69\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/10\/Alexander-Eichhorn-ist-es-sinnvoll-langlaufende-optionen-zu-handeln.png\" alt=\"The equation shows: $16 cdot sqrt{360\/90 cdot days} = $32.\" class=\"wp-image-64037\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/10\/Alexander-Eichhorn-ist-es-sinnvoll-langlaufende-optionen-zu-handeln.png 346w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/10\/Alexander-Eichhorn-ist-es-sinnvoll-langlaufende-optionen-zu-handeln-300x60.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2025\/10\/Alexander-Eichhorn-ist-es-sinnvoll-langlaufende-optionen-zu-handeln-18x4.png 18w\" sizes=\"auto, (max-width: 346px) 100vw, 346px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In practice, the situation is similar: An ATM put option on the SPY with 90 days to maturity is $16.7, while the same option with 362 days is $36.7. This corresponds to a factor of 2.17, i.e. slightly above the theoretical value. This deviation is due to factors such as volatility skew or term structure, but the square root rule still shows the basic trend correctly.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Time value decay and relative price development<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long-term options are relatively cheaper, similar to an annual subscription compared to a monthly subscription. For buyers, this is an advantage that allows them to invest in high-priced shares or ETFs even with small amounts. For sellers of options, long terms are less attractive as the time value decays more slowly.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A concrete example at SPY:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>90-day ATM put: $16.7 \u2192 falls to $ 0 within the last 90 days<\/li>\n\n\n\n<li>362-day ATM put: $36.7 \u2192 falls to $31.7 in 90 days<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Although 90 days elapse in both cases, the short-dated option loses three times as much value. For this reason, sellers prefer shorter terms - this is where time value can be \u201eharvested\u201c most efficiently.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Long-running options (LEAPS) and gamma<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long-dated options, known as LEAPS, have a decisive advantage despite their slower time value decay: they react much more slowly to price movements because their gamma is lower.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Example:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Gamma runtime<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">90 DTE -0.91<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">360 DTE -0.40<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means that short-term options react strongly to price movements, while LEAPS remain calmer. In turbulent market phases - such as crashes - this inertia can help to cushion losses. Long-term options are therefore more robust and bring calm to the portfolio.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Strategic considerations for retail<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long-dated options are less suitable for strategies that rely on rapid time value decay. Those who, for example <a href=\"https:\/\/eichhorn-coaching.de\/0dte-optionen\/\" rel=\"nofollow noopener\" target=\"_blank\">0DTE options<\/a> hoping that they will expire worthless does not achieve the same effect with LEAPS - the reduction in fair value is very slow at first.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For this reason, small profit targets (take profit) are usually set for long-dated options, e.g. between 15-30 %. As soon as the target is reached, the position is closed and a new option is sold. This keeps the portfolio stable, while the risk is limited by the low gamma. If you stay in a position too long, you run the risk of the gamma risk increasing again - similar to short-term options.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Selection of underlying, delta and premium<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Liquid and large underlyings, such as ETFs like SPY or IWM, are suitable for long-term strategies. As a rule, the chosen term is around 365 calendar days; smaller deviations are unproblematic.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The option is often selected according to delta - we prefer delta 30 options. Reason: Long-dated options have a high vega, i.e. a strong dependence on volatility. The normalized vega shows how strongly an option reacts to volatility fluctuations in percentage terms. Example: A 440 put (delta 5, 348 DTE) has a normalized vega of 14 %, a 635 put (delta 30) only 8 %. This means that options closer to the money react less strongly to changes in volatility.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Stop loss, take profit and risk management<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long-dated options require adjusted stop loss and take profit levels. Small targets allow positions to be closed and resold quickly, while large targets take a long time. Backtests from 2019-2025 showed that a combination of 15 % take profit and 50 % stop loss is most effective: high hit rate (86 %) with low maximum drawdown.<\/p>\n\n\n<div id=\"footable_parent_64040\"\n         class=\"footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui\">\n                <table data-ninja_table_instance=\"ninja_table_instance_0\" data-footable_id=\"64040\" data-filter-delay=\"1000\" aria-label=\"Blog - Trading long-dated options\"            id=\"footable_64040\"\n           data-unique_identifier=\"ninja_table_unique_id_2667241209_64040\"\n           class=\"foo-table ninja_footable foo_table_64040 ninja_table_unique_id_2667241209_64040 ui table  ninja_search_right nt_type_legacy_table selectable striped vertical_centered  footable-paging-right ninja_table_search_disabled ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0\">\n                            <col class=\"ninja_column_1\">\n                            <col class=\"ninja_column_2\">\n                            <col class=\"ninja_column_3\">\n                            <col class=\"ninja_column_4\">\n                            <col class=\"ninja_column_5\">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                                                                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_take_profit\">Take profit<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_stop\">Stop<\/th><th scope=\"col\"  class=\"ninja_column_2 ninja_clmn_nm_total_return\">Total Return<\/th><th scope=\"col\"  class=\"ninja_column_3 ninja_clmn_nm_erwartungswert\">Expected value<\/th><th scope=\"col\"  class=\"ninja_column_4 ninja_clmn_nm_anzahl_der_trades\">Number of trades<\/th><th scope=\"col\"  class=\"ninja_column_5 ninja_clmn_nm_max_drawdown\">Max drawdown<\/th><\/tr>\n<\/thead>\n<tbody>\n\n        <tr data-row_id=\"4629\" class=\"ninja_table_row_0 nt_row_id_4629\">\n            <td>15<\/td><td>50<\/td><td>$21.305<\/td><td>125<\/td><td>170<\/td><td>2,80%<\/td>        <\/tr>\n            <tr data-row_id=\"4630\" class=\"ninja_table_row_1 nt_row_id_4630\">\n            <td>30<\/td><td>50<\/td><td>$19.354<\/td><td>215<\/td><td>90<\/td><td>3,00%<\/td>        <\/tr>\n            <tr data-row_id=\"4631\" class=\"ninja_table_row_2 nt_row_id_4631\">\n            <td>50<\/td><td>50<\/td><td>$15.881<\/td><td>294<\/td><td>54<\/td><td>4,50%<\/td>        <\/tr>\n            <tr data-row_id=\"4632\" class=\"ninja_table_row_3 nt_row_id_4632\">\n            <td>80<\/td><td>50<\/td><td>$5.038<\/td><td>153<\/td><td>33<\/td><td>5,50%<\/td>        <\/tr>\n            <tr data-row_id=\"4633\" class=\"ninja_table_row_4 nt_row_id_4633\">\n            <td>15<\/td><td>100<\/td><td>$16.719<\/td><td>120<\/td><td>139<\/td><td>4,10%<\/td>        <\/tr>\n            <tr data-row_id=\"4634\" class=\"ninja_table_row_5 nt_row_id_4634\">\n            <td>30<\/td><td>100<\/td><td>$15.734<\/td><td>216<\/td><td>73<\/td><td>3,90%<\/td>        <\/tr>\n            <tr data-row_id=\"4635\" class=\"ninja_table_row_6 nt_row_id_4635\">\n            <td>50<\/td><td>100<\/td><td>$16.295<\/td><td>339<\/td><td>48<\/td><td>4,20%<\/td>        <\/tr>\n            <tr data-row_id=\"4636\" class=\"ninja_table_row_7 nt_row_id_4636\">\n            <td>80<\/td><td>100<\/td><td>$8.652<\/td><td>333<\/td><td>26<\/td><td>3,80%<\/td>        <\/tr>\n            <tr data-row_id=\"4637\" class=\"ninja_table_row_8 nt_row_id_4637\">\n            <td>15<\/td><td>150<\/td><td>$11.870<\/td><td>93<\/td><td>127<\/td><td>5,10%<\/td>        <\/tr>\n            <tr data-row_id=\"4638\" class=\"ninja_table_row_9 nt_row_id_4638\">\n            <td>30<\/td><td>150<\/td><td>$16.867<\/td><td>242<\/td><td>69<\/td><td>3,60%<\/td>        <\/tr>\n            <tr data-row_id=\"4639\" class=\"ninja_table_row_10 nt_row_id_4639\">\n            <td>50<\/td><td>150<\/td><td>$14.756<\/td><td>360<\/td><td>41<\/td><td>4,60%<\/td>        <\/tr>\n            <tr data-row_id=\"4640\" class=\"ninja_table_row_11 nt_row_id_4640\">\n            <td>80<\/td><td>150<\/td><td>$18.181<\/td><td>790<\/td><td>23<\/td><td>3,40%<\/td>        <\/tr>\n    <\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table>\n    \n    \n    \n<\/div>\n\n\n\n\n<p class=\"wp-block-paragraph\">The risk of a single trade should never exceed 2-3 % of the portfolio. For smaller accounts, alternatives such as IWM puts or sector ETFs, which are less leveraged, or smaller deltas are suitable.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Opportunities and restrictions<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long-dated options offer an interesting opportunity to build up stable positions and profit from the market at the same time. They are less sensitive to short-term fluctuations, have a slower theta and allow controlled risk management.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the same time, they are not a panacea: the strategy has benefited greatly from the bull market in recent years. Even conservative trades can come under pressure during prolonged downturns or a sharp rise in volatility. We therefore recommend testing the strategy in paper trading first before investing real capital.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Long-term options are a flexible tool for traders who want to take advantage of long-term movements with low gamma risk. If you properly adjust your stop loss, take profit and position size, you can benefit from a high hit rate and stability without putting too much strain on your portfolio. At the same time, a residual risk remains: losses can occur during crash phases or volatility spikes. The strategy is therefore particularly suitable for traders who observe the market over the long term and have understood the mechanics of LEAPS.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Video: Minicrash on Friday &amp; what now? | Trader Alexander Eichhorn<\/h2>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n <div class=\"brlbs-cmpnt-container brlbs-cmpnt-content-blocker brlbs-cmpnt-with-individual-styles\" data-borlabs-cookie-content-blocker-id=\"youtube-content-blocker\" data-borlabs-cookie-content=\"PGlmcmFtZSB0aXRsZT0i8J+fqCBNaW5pY3Jhc2ggYW0gRnJlaXRhZyAmYW1wOyB3YXMgbnVuPyB8IFRyYWRlciBBbGV4YW5kZXIgRWljaGhvcm4iIHdpZHRoPSI1MDAiIGhlaWdodD0iMjgxIiBzcmM9Imh0dHBzOi8vd3d3LnlvdXR1YmUtbm9jb29raWUuY29tL2VtYmVkL1MxN2ZkX3JvUW1zP2ZlYXR1cmU9b2VtYmVkIiBmcmFtZWJvcmRlcj0iMCIgYWxsb3c9ImFjY2VsZXJvbWV0ZXI7IGF1dG9wbGF5OyBjbGlwYm9hcmQtd3JpdGU7IGVuY3J5cHRlZC1tZWRpYTsgZ3lyb3Njb3BlOyBwaWN0dXJlLWluLXBpY3R1cmU7IHdlYi1zaGFyZSIgcmVmZXJyZXJwb2xpY3k9InN0cmljdC1vcmlnaW4td2hlbi1jcm9zcy1vcmlnaW4iIGFsbG93ZnVsbHNjcmVlbj48L2lmcmFtZT4=\"><div class=\"brlbs-cmpnt-cb-preset-c brlbs-cmpnt-cb-youtube\"> <div class=\"brlbs-cmpnt-cb-thumbnail\" style=\"background-image: url('https:\/\/www.captrader.com\/wp-content\/uploads\/borlabs-cookie\/1\/yt_S17fd_roQms_hqdefault.jpg')\"><\/div> <div class=\"brlbs-cmpnt-cb-main\"> <div class=\"brlbs-cmpnt-cb-play-button\"><\/div> <div class=\"brlbs-cmpnt-cb-content\"> <p class=\"brlbs-cmpnt-cb-description\">You are currently viewing placeholder content from <strong>Youtube<\/strong>. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.<\/p> <a class=\"brlbs-cmpnt-cb-provider-toggle\" href=\"#\" data-borlabs-cookie-show-provider-information role=\"button\">More Information<\/a> <\/div> <div class=\"brlbs-cmpnt-cb-buttons\"> <a class=\"brlbs-cmpnt-cb-btn\" href=\"#\" data-borlabs-cookie-unblock role=\"button\">Unblock content<\/a> <a class=\"brlbs-cmpnt-cb-btn\" href=\"#\" data-borlabs-cookie-accept-service role=\"button\" style=\"display: inherit\">Accept required service and unblock content<\/a> <\/div> <\/div> <\/div><\/div>\n<\/div><figcaption class=\"wp-element-caption\">Video: Minicrash on Friday &amp; what now? | Trader Alexander Eichhorn<\/figcaption><\/figure>","protected":false},"excerpt":{"rendered":"<p>Im Optionshandel dreht sich vieles um Timing und Strategie \u2013 doch eine Frage besch\u00e4ftigt fast alle Trader gleicherma\u00dfen: Welche Laufzeit sollte ich w\u00e4hlen? Kurzfristige Optionen locken mit schnellem Zeitwertverfall, w\u00e4hrend langlaufende Kontrakte Ruhe und Stabilit\u00e4t versprechen. Doch welche Variante passt wirklich zu welchen Zielen, und wo liegen die Chancen und Risiken? In diesem Artikel werfen [&hellip;]<\/p>\n","protected":false},"author":46,"featured_media":62862,"menu_order":0,"template":"","blog-kategorie":[839],"class_list":["post-64036","blog","type-blog","status-publish","has-post-thumbnail","hentry","blog-kategorie-optionen"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog\/64036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/blog"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/46"}],"version-history":[{"count":4,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog\/64036\/revisions"}],"predecessor-version":[{"id":64047,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog\/64036\/revisions\/64047"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media\/62862"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=64036"}],"wp:term":[{"taxonomy":"blog-kategorie","embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/blog-kategorie?post=64036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}