Glossary

LEAPS

By Rohan Fernandes, Founder · Updated 2026-08-22 · Educational reference, not investment advice

LEAPS (Long-term Equity AnticiPation Securities) are listed options with expirations roughly a year or more out. They substitute for stock in multi-month directional positions, commonly held deep in the money around 0.70-0.75 delta.

At LEAPS horizons the quiet greeks wake up: vega is large (volatility entry level matters), rho is material (rates compound over years), and dividend-driven early-exercise mechanics affect deep in-the-money calls. The working treatment, including the post-earnings drift screen, is in the LEAPS article.

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