LEAPS

Long-Term Equity Anticipation Securities -- options contracts with expiration dates ranging from one to three years out, far longer than standard monthly or weekly options. LEAPS give traders and investors a way to gain leveraged exposure to a stock's long-term movement without tying up the full capital required to own shares outright. They were introduced by the CBOE in 1990 and are popular among investors who want to combine the patience of a buy-and-hold approach with the leverage of options.