What are long-term equity anticipation securities (leaps)?

LEAPS, which stand for Long-Term Equity Anticipation Securities, are simply listed equity call and put options that have initial expiration dates that are greater than one year, and up to 39 months into the future. As with all options, LEAPS come with unique risks and investors should understand the potential risks and rewards of trading in them.

What are the strategic uses of leaps for long-term investors?

Here are a few strategic uses of LEAPS for long-term investors. Buying LEAPS calls allows you to benefit from a potential increase in a stock or index over the course of a few years. Assume you believe a stock will go up in price over the next couple of years. Instead of purchasing the stock outright, you might want to buy a 2-year LEAPS option.

Is leap year a good time to invest?

An options strategy for short-term traders and longer-term investors. Leap year has nothing to do with LEAPS. But it’s never a bad time to learn about the potential benefits of long-term equity anticipation securities, commonly known as LEAPS. These long-dated options may come in handy for long-term investors and traders alike.

What are leap call options & how do they work?

LEAP call options are basically long-term call option contracts with expirations beyond one year. These give the buyer the right, but not the obligation, to purchase the underlying stock at a specified strike price until the expiration date.