Leaps

Acronym for Long-Term Equity AnticiPation Securities, LEAPS are long-term equity options traded on U.S. Exchanges and over the counter. Instead of expiring in two near-term and two farther out months as most equity Options do, LEAPS expire in two to five years, giving the buyer a longer time for his strategy to come to fruition. LEAPS are traded on many individual stocks listed on the New York Stock Exchange, the American Stock Exchange, and NASDAQ.