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Want to Buy a Stock in the Future but Lock In the Price Now? Here's How

Have you ever wanted to buy a stock many months in the future but at a locked-in price? Well, there's a way you can do it with stock options.

This strategy is called the contingent purchase. Under this plan, you buy a Long-term Equity AnticiPation Securities, or LEAPS, call option, and you offset the cost by selling short a series of short-term put options that expire before the call option.

Uncovered short put options have the same market risk as covered call options. As long as you select put...


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