Aug 31 2010

What are LEAPS?

Category: Finance


LEAPS is an acronym that stands for Long Term Equity AnticiPation Security. They are essentially long term equity options with an expiration that can extend up to 3 years into the future. Like all options, LEAPS give investors the ability to benefit from price swings without having to purchase the underlying security. The extended time frame makes these derivatives an attractive option for potential investors. LEAPS are currently available on over 300 equities and 11 indexes.

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