Define: LEAPS

UK Accounting Glossary

Definition: LEAPS



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Full Definition of LEAPS


LEAPS, or Long-Term Equity Anticipation Securities, are equity or index options that have a long-term expiration date. LEAPS can have expiration dates as much as two years and eight months into the future whereas ordinary options stock options have an expiration date in under one year. As a result, LEAPS options are much more difficult to price. Not every underlying equity having options traded on it will have LEAPS options, too. The options exchange will only initiate LEAPS option trading if research with market participants including any specialist or market maker indicates sufficient interest exists. A LEAPS option series will only have three strike prices at initiation, the current price and both 20-25% above and below the current price. The LEAPS expiration month is always January. LEAPS that expire in under a year continue to trade as ordinary options. LEAPS are attractive for long-term investment and portfolio insurance positions.


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Synonyms For LEAPS


Long-Term Equity Anticipation Securities


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LEAPS. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 29, 2020 https://payrollheaven.com/define/leaps/.
Chicago Manual of Style (CMS):
LEAPS. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/leaps/ (accessed: March 29, 2020).
American Psychological Association (APA):
LEAPS. PayrollHeaven.com. Retrieved March 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/leaps/

Definition Sources


Definitions for LEAPS are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 10th February 2020.