LEAPS
Business & Finance abbreviation · Stock Market & Investing
| Stands for | Long-Term Equity AnticiPation Securities |
|---|---|
| Categories | Business & Finance |
LEAPS stands for Long-Term Equity AnticiPation Securities, a stock market & investing abbreviation.
Exchange-listed options with expiration dates more than one year away, typically up to about three years, available on many large stocks and ETFs. Investors use them as long-term substitutes for owning shares or for extended hedges.
Example: Instead of buying 100 shares, she bought a two-year LEAPS call for a fraction of the cost.
Usage notes
LEAPS is a registered trademark of Cboe, which introduced the products in 1990. They are standard options with long maturities, so their prices contain far more time value than short-dated options. Holding them for more than a year can qualify gains for long-term capital gains treatment in the US.
Related abbreviations
More stock market & investing abbreviations
- IPO – Initial public offering
- IR – Investor relations
- ISIN – International Securities Identification Number
- ITM – In the money
- IV – Implied volatility
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- LSE – London Stock Exchange
- MA – Moving average
- MACD – Moving average convergence divergence
- MF – Mutual fund
- MLP – Master limited partnership
- MMF – Money market fund