LEAPS (Long-Dated Options)

LEAPS are options contracts (the right to buy or sell a stock at a set price) that expire much further in the future than typical options—usually 9 months to 3 years out. While regular options might expire in weeks or months, LEAPS give you way more time for your bet to play out. You'll encounter them when you want longer-term exposure to a stock's price movement without actually owning shares, or when you want to lock in a purchase price far ahead. For example, you might buy LEAPS on TechCorp stock expiring in 2 years, betting the price will rise significantly by then. They're riskier than owning stock directly but require less upfront cash.