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Long-Term Options- Introduction

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Long-Term Options Introduction Instead, the purpose of this is to highlight the fact that option  premiums in general do not reflect the expected long-term growth rate of the underlying  equities and to explain an investment strategy that can be used to take maximum  advantage of this phenomenon.  As I mentioned before, my own interest in this subject stems from the fact that I could no  longer contribute additional funds to my retirement plan. As a long-term investor in the  market, I had assembled a stock portfolio over many years, and I simply did not wish to  raise cash by selling any of my winners. My few losers and laggards had long since been  disposed of and the proceeds used to buy more shares of my better-performing stocks.  I'm not a short-term, in-and-out investor, but I wanted to keep buying. Options seemed the way to go, but as with stocks, purchasing calls requires money.  What's more, options can only be paid for in cash, so going on margin and