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You can find out which Leaps are available at cboe.


  1. The Options Industry Council (OIC) - LEAPS® Strategies!
  2. Understanding LEAPS: Using the Most Effective Options Strategies for Maximum Advantage;
  3. forex joensuu;
  4. Drawbacks to the Buy LEAPS Strategy.
  5. An Options Strategy for Long-Term ETF Investors | Barron's.
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You are essentially renting the equity exposure instead of owning it. Yet such a trade also reduces your upside. If you invest that money in higher-yielding assets, you could reduce or eliminate that lost upside.

Understanding LEAPS: Using the Most Effective Options Strategies for Maximum Advantage [Book]

More sensible is to write calls on ETFs for shorter monthly periods, but buy a Leaps put. After each call expires, you write another one until the put expires. Meanwhile, you lock in the low cost of the puts Leaps for two-plus years.

LEAP Options: The Best Investment Strategy I’ve Ever Seen

Email: editors barrons. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at or visit www. We've detected you are on Internet Explorer. There are literally scores of option strategies.

Buy LEAPS Puts

Straddles, strangles, and butterflies are just some of the main types of strategies where an investor can use options or sets of options to bet on any number of stock and market movements. Most of these are beyond the scope of this lesson, so we will just focus on two strategies most often used by value investors.

First, leaps are options with relatively long time horizons, typically lasting for a year or two. The term "leaps" is an acronym for "long-term equity anticipation securities. As we see above, leaps can offer investors better returns. However, this bigger bang for the buck does not come without some additional risks. Need Help? Toll Free 1.

Online trading has inherent risk due to system response and access times that may vary due to market conditions, system performance, and other factors.


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  • An investor should understand these and additional risks before trading. Carefully consider the investment objectives, risks, charges and expenses before investing. All investments involve risk and losses may exceed the principal invested. Past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns.

    Trading Leap options – Part 1

    Firstrade is a discount broker that provides self-directed investors with brokerage services, and does not make recommendations or offer investment, financial, legal or tax advice. Options trading involves risk and is not suitable for all investors. Options trading privileges are subject to Firstrade review and approval. Please review the Characteristics and Risks of Standardized Options brochure and the Supplement before you begin trading options.

    LEAPS Options: All You Need To Know

    ETF trading involves risks. Before investing in an ETF, be sure to carefully consider the fund's objectives, risks, charges, and expenses. Please read the prospectus carefully before investing. Leveraged and Inverse ETFs may not be suitable for long-term investors and may increase exposure to volatility through the use of leverage, short sales of securities, derivatives and other complex investment strategies.