LEAPS® (Long-term Equity Anticipation Securities®) are essentially options with a longer expiration cycle.
On October 5, 1990, CBOE designed Equity LEAPS® as a response to investors' desire for options with longer-term expirations. LEAPS are long-term options with an expiration date as far as three years in the future that allow investors to establish long or short positions. You buy and sell them from a broker as you would any other option.
Related Fool Articles
Related Community Blogs
Recent Mentions on Fool.com
- Why Haven't More Wall Street CEOs Gone to Jail Since the Financial Crisis?
- 5 Things Monsanto Management Wants You to Know
- 3 Dividend Stocks With Century-Long Dividend Streaks
- These Stocks Pay Big Yields With Barely More Risk Than Bonds
- Twitter Inc Hopes This New Feature Will Get You to Log In
- The Wildest and Wooliest IPO in Recent Memory