LEAPS (Long-term Equity Anticipation Securities)

LEAPS (Long-term Equity Anticipation Securities) are options contracts that give investors the right to buy or sell a stock at a specified price, but with expiration dates typically extending up to three years into the future. Unlike standard options, which usually last a few months, LEAPS allow for a longer-term approach to betting on a stock's movement or hedging investments. This longer time horizon provides more flexibility and time to realize potential gains or protect against losses, making them a useful tool for investors with a long-term outlook.