what are leaps and why do people trade them?

I keep hearing about LEAPS but I am not clear on what they are.

I understand they are a type of option, but how do they differ from standard options? What are the reasons someone would prefer trading them over regular options?

I want to know if they are suitable for beginners like me.

LEAPS are just options with longer expiration dates, usually over a year out.

I burned through regular weekly options when I started because time decay killed me fast. Lost $800 in two weeks on Apple calls that expired worthless.

Now I use LEAPS when I want to play longer trends without the constant stress of expiration dates approaching every week.

LEAPS expire 9+ months out. Higher delta means they move closer to stock price. Better for beginners due to slower time decay.

Time decay with LEAPS is much slower, allowing for errors in timing. Regular options can end up worthless even if the direction is correct but the timing is not right.

The downside is the need for a larger upfront investment since they are more expensive. However, that extra time can prevent panic selling during volatile market conditions.

For beginners, they are a sensible choice as they provide an opportunity to learn without weekly expiration pressures.

LEAPS are like a safety net for your trades. They let you hold onto your position for more than a year, so you don’t face the intense time decay that regular options do. While they require a bigger upfront investment, that can actually work in your favor as a beginner. You have more time to let your prediction play out, which can reduce the pressure. Just remember to manage your risk properly even with more time at your disposal.

LEAPS let you hold positions longer but come with higher upfront costs.