Long-Term Options Plays: Mohawk, Whole Foods

Another solid bet is Sears Holdings(SHLD Quote), the retailer controlled by investor Eddie Lampert. If you look at Sears as a retailer, then you might not see a bright future. But if you look at Sears as a company run by one of the best long-term money managers around who happens to own over 50% of stock for himself, Sears could be worth a lot more.

Don't forget that Berkshire Hathaway was once a textile mill. Sears is off more than 50% from its all-time high and is currently at $88 a share. If you believe Lampert can deliver the goods, then the LEAPS are worth some examination.

With bright prospects for equities in 2008 all but gone, participation in LEAPS today can yield terrific results for investors who have the patience. The current sharp decline in equity prices further brightens the picture.

(Note: Current financial Web sites are displaying January 2010 options as being the longest-dated. However, your broker can inform you of the longer dates.)

This was originally published on RealMoney on August 25, 2008. For more information about subscribing to RealMoney, please click here.