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Define: LEAPS Options

LEAPS Options, short for Long Expiration Anticipation Positions, are options created with extremely long expiration in order to serve long term hedging or stock replacement purpose.

Prior to the invention of LEAPS options, options typically have a lifespan of only about 3 months and do not serve longer term hedging or speculation purpose. LEAPS options are typically written with expirations as long as 6 months, 1 year or even 3 years out.

Read the full tutorial on LEAPS Options.