LEAPS

LEAPS stands for Long Term Equity Anticipation Security and are options that have longer than usual expiration.

Most options have expiry cycles of three, six, or nine months while LEAPS can have an expiration of a year, two years or even three years. LEAPS are often seen as more conservative investments because of the longer term of the contract. They are good for beginning investors because they can offer some of the benefits and fewer of the risks associated with having the actual stocks in one’s portfolio.