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
- The Good and the Bad From SolarCity Corp.'s First Quarter
- Here's Cisco Systems, Inc.'s Next CEO: What You Need to Know
- 5 Things Dow Chemical Co's Management Wants You to Know
- Why Everything Seadrill Saw Huge Gains in April
- 3 Types of Risk Facing Automakers
- The Inside Story: Why International Business Machines Corp. Is Betting Billions on the Internet of T