Benefits of LEAPS Options
Equity LEAPS Benefits
- Equity LEAPS calls can provide long-term stock market investors an opportunity to benefit from the growth of large capitalization companies without having to make outright stock purchases
- Equity LEAPS puts can provide a hedge for stock investors against substantial declines in underlying equities
- Current equity options users may also find LEAPS appealing if they desire to take a longer term position of up to three years in some of the same options they currently trade
Index LEAPS Benefits
- Index LEAPS let you trade, hedge or invest in the "entire" stock market or select industry sectors for a time that can be measured in years
- Index options let you take a bullish or bearish position on the entire market
- Index options let you hedge your investments against adverse market moves
- Index LEAPS let you do all this over a longer time period