LEAPS (Long-Dated Options)

LEAPS are options contracts that expire far in the future—typically 9 months to 3 years out—instead of the weeks or months of regular options. An option gives you the right (but not the obligation) to buy or sell a stock at a set price by a certain date. You'll encounter LEAPS when you want longer-term bets on a company's direction without committing to actually owning the stock. They matter because they let you control a large position with less upfront money, though they cost more than short-term options. For example, instead of buying 100 shares of TechCorp outright, you might buy a LEAPS call option giving you the right to purchase those shares at today's price anytime over the next two years.