Are options profits considered short term capital gains.?

Anything under 12 months is short term cap gains - that includes options.

Anything held over 12 months is subject to long term cap gains - that includes options.

Options Long Term Capital Gains

1

Usually, but not always.

A long call LEAPS option held unhedged for more than a year would be a long-term gain/loss.

If an option is written and assigned, and the underlying security is held unhedged for more than a year, the option premium would be part of the gain/loss of the underlying security which would be treated as a long-term gain/loss.

Any Section 1256 option contract is subject to the 60/40 rule where "60% of your capital gain or loss will be treated as a long-term capital gain or loss, and 40% will be treated as a short-term capital gain or loss. This is true regardless of how long you actually held the property." If you are not familiar with Section 1256 contracts see IRS Publication 500

http://www.irs.gov/pub/irs-pdf/p550.pdf

pages 39 through 41.

The guy that explained the leaps is correct. They are options that last for up to 39 months and can be considered long-term. Your standard options, however, are always short-term. All options are taxed as capital gains and never as ordinary income like dividends or interest.

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It depends how long you hold them, like anything else.

If you hold an option for three months, then, yes, it is short term.

yes