LEAPS
Also called: long-dated options, long term equity anticipation securities
LEAPS are exchange-traded options with expiries more than a year out. The long horizon changes their character: time decay is slow, so they behave more like leveraged stock than a short-dated bet, and they carry high vega, so a change in implied volatility can matter more than a move in the underlying. They are the usual vehicle for expressing a multi-year view with limited capital and defined loss.
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