LEAPS
Long-Term Equity Anticipation Securities; options with expirations typically one year or more in the future.
Explanation
LEAPS provide long-term exposure to stock movements with limited risk (for buyers). They have high vega exposure, making them sensitive to volatility changes. Deep ITM LEAPS calls can serve as stock replacements with less capital. LEAPS have slower theta decay than short-term options.
Example
Buying a January 2026 LEAPS call on AAPL at the 130 strike for $28.00 gives you over a year of exposure with $2,800 at risk instead of $15,500 for 100 shares.