# LEAPS

*Derivatives & Options — Finicade finance glossary*

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.

**Also known as:** long-dated options, long term equity anticipation securities

**Related terms:** [Option](https://finicade.com/glossary/option), [Theta](https://finicade.com/glossary/theta), [Time Value](https://finicade.com/glossary/time-value), [Expiration](https://finicade.com/glossary/expiration), [Delta](https://finicade.com/glossary/delta)

Source: https://finicade.com/glossary/leaps