Long-Term Equity Anticipation Securities - LEAPS

Long-Term Equity Anticipation Securities - LEAPS

An options contract that expires more than nine months in advance, and can last as long as two years. Normal options tend to last no longer than nine months.

Notes:

LEAPS are an excellent way, if not the only way, to make a long-term option investment. They trade like normal options but allow investors to benefit from the appreciation of equities while placing a lot less money at risk than is required to purchase stock.

See also: Call, Option, Options Contract, Put