How LEAP Options Work
A LEAP option works like any option — it gives the right to buy (call) or sell (put) 100 shares at the strike before expiration — but its long time horizon changes how price, time decay and sensitivity behave.
Time decay over a long horizon
Time decay (theta) is slow when expiration is far away and accelerates in the final months. Many LEAP traders plan to exit or roll before that acceleration.
Delta and stock replacement
Deeper in-the-money LEAP calls have higher delta and move more like the stock. Out-of-the-money LEAPs are cheaper but need a larger move.
Example
A trader buys one call expiring in ~18 months. They record the entry, set exit targets on the underlying, and plan to review the trade well before the final six months.
SwingLEAP is a planning and record-keeping tool. It does not recommend trades, predict prices, or execute orders.