Can someone explain what is a leap option?

I keep hearing about leap options in trading groups and I am not clear on what they are.

Are they different from regular options? How do they actually function?

I have been trading for a while but usually stick to the basics, so this feels unfamiliar.

LEAP options have expiration dates much longer than regular options, typically 1-2 years.

LEAP options expire in 12+ months vs standard options that expire weekly or monthly.

• Higher premium cost
• Lower time decay impact
• More room for underlying price movement

Typically used for long-term directional bets.

LEAP stands for Long-term Equity Anticipation Securities. They differ from regular options as they have expiration dates of over a year.

I purchased a LEAP for Apple when I was still learning the ropes. I spent $800 on a call option with an 18-month expiration.

The key difference is time. You pay higher premiums, but it allows the stock more room to move favorably.