A Holding Period is the amount of time an investor holds onto an investment. It's always interesting when you hear traders say whether they are long or short options, or if they will hold a position for a month or two. As such, I wanted to take the time to explain what holding periods mean when talking about options positions.Holding periods are a crucial part of investing. You hear them used a lot by the investment industry, and if you spend any time researching stocks or funds, it's likely you'll come across this term as well.The holding period is an important part of any financial product. It's referred to in a variety of finance-related terms like “term”, “holding period”, “time value”, and “slippage”. However, if you're an options trader, chances are that the term means nothing to you (unless you're writing options-related software).
