LEAPS

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LEAPS

Long-Term Equity Anticipation Securities

Stock options with expiration of two to three years following issue. Most stock options expire nine months after issue; an advantage to LEAPS is the fact that there is a longer period of time for a desired price movement to take place, maximizing the possibility of profit. However, LEAPS are more expensive than other stock options.

LEAPS

See long-term equity anticipation securities.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Long-term equity anticipation securities (LEAPS).

These long-term options on stocks have expiration dates of up to three years rather than the shorter terms of most stock options, which are never longer than nine months.

The benefit of LEAPS, from an investor's perspective, is that there's more time for the price movement you anticipate to occur.

However, LEAPS are available on fewer underlying stocks than standard options, and they are generally more expensive than the shorter term options on the same security.

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References in classic literature ?

Yet Tarzan did not hesitate more than had Teeka, but leaped upon Histah with all the speed and impetuosity that he would have shown had he been springing upon Bara, the deer, to make a kill for food.

Instantly a brown hand leaped forth and seized the mottled neck, and another drove the heavy hunting knife to the hilt into the little brain.

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The flames leaped high upon the rejuvenated fire, lighting the entire camp, and the awakened men shrank back in superstitious terror from the sight that met their frightened and astonished vision.

Growling, the great apes leaped forward toward Tarzan and Werper.

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It was no man who leaped forward upon that Boche officer, striking aside the sharp bayonet as one might strike aside a straw in a baby's hand--it was a wild beast and the roar of a wild beast was upon those savage lips, for as that strange sense that Tarzan owned in common with the other jungle-bred creatures of his wild domain warned him of the presence behind him and he had whirled to meet the attack, his eyes had seen the corps and regimental insignia upon the other's blouse--it was the same as that worn by the murderers of his wife and his people, by the despoilers of his home and his happiness.

Without a backward glance at the awe-struck soldiers Tarzan leaped the trench and was gone.

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The big bay leader had leaped many times in the air, but Mowgli dared not risk a false blow.

Then he ran as he had never run in his life before, spurned aside one--two-- three of the piles of stones into the dark, sweet-smelling gullies; heard a roar like the roar of the sea in a cave; saw with the tail of his eye the air grow dark behind him; saw the current of the Waingunga far below, and a flat, diamond- shaped head in the water; leaped outward with all his strength, the tailless dhole snapping at his shoulder in mid-air, and dropped feet first to the safety of the river, breathless and triumphant.

A dhole leaped to his leader's aid; but before his teeth had found Won-tolla's flank, Mowgli's knife was in his throat, and Gray Brother took what was left.

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At the same in-stant I leaped clear of the stumbling animal.

As he wallowed Juag returned, and the two of us leaped in when an opening afforded the opportunity and snatched our javelins from his side.

The thag had covered considerable ground from the point at which I had leaped upon him.