LEAPS (Long-Dated Options)

LEAPS are options contracts that expire much further in the future than standard options—typically 9 months to 3 years out. Since regular options usually expire within weeks or months, LEAPS give you way more time for your bet to play out. You'll encounter them when you're looking at longer-term strategies, like betting on a company's direction over the next year or two without committing to buying the actual stock. They're useful because they're cheaper than buying shares outright, but riskier since you can lose your entire investment if the stock moves the wrong way. For example, you might buy LEAPS calls on a tech company you believe in, betting it'll rise significantly over the next two years.