long-term equity anticipation securities
Long-Term Equity Anticipation Securities
long-term equity anticipation securities (LEAPS)
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.