LEAP Options
What Are LEAP Options?
LEAP options are standard call or put options with more than one year until expiration. The name stands for Long-term Equity AnticiPation Securities.
Key features
- Expirations usually in January, one to three years out
- Same mechanics as any listed option
- Higher premium because of more time value
How traders use LEAPs
Long LEAP calls are often used as a lower-capital alternative to owning shares; long LEAP puts as longer-term downside exposure. Either way, the position is held for months, so planning and record-keeping matter.
SwingLEAP is a planning and record-keeping tool. It does not recommend trades, predict prices, or execute orders.