What are LEAPS options?

Short answer

LEAPS (Long-term Equity AnticiPation Securities) are options that expire more than a year out. Deep in-the-money LEAPS calls can act like owning the stock for a fraction of the cost, with slower time decay than short-term options — but you can still lose the whole premium.

Unusual options activity, live

As of Oct 16, 7:50 PM ET

Source · Rebel Intelligence. A large order can be a hedge, not a bet.

Why traders use them

Stock-like exposure with less capital (often a 0.70–0.80 delta call).
Time decay is slow for most of the option’s life.
Can be paired with short-term calls sold against them (a “poor man’s covered call”).

Risks

Leverage cuts both ways; a stock drop can take most of the value.
No dividends are received.
Wider bid-ask spreads on some names.

Common questions

How long do LEAPS last?

Typically one to three years at listing, usually expiring in January.

Are LEAPS safer than short-term options?

They give a thesis more time and decay more slowly, but they are still leveraged and can expire worthless.

When do LEAPS become regular options?

Once less than about a year remains, they trade like any other long-dated option.

Go deeper with Rebel Intel

Compare an NVDA LEAPS call to owning 100 shares What is a poor man’s covered call?Show me long-dated whale trades today

Educational only, not investment advice. Options involve risk and are not suitable for all investors. See how Intel is reviewed.