What are LEAPS Options?

Many investors are familiar with the term stock options, but relatively few understand what they are and how they work. Stock options are simply contracts that give buyers the right, but not obligation, to buy or sell an underlying stock at a specific price on or before a certain date. LEAPS – or long-term equity anticipation securities – are simply long-term stock options. Read more

Create a LEAPS Portfolio

Long-term equity anticipation securities – or LEAPS – are long-term options that can be used as a substitute for holding the underlying stock. LEAPS offer investors a way to create a large portfolio of stocks at a fraction of the cost with a more limited downside. This article will explore how average investors can create a diversified stock portfolio with LEAPS options in order to leverage their returns and reduce their risk. Read more

A Better Covered Call Alternative

Covered calls are perhaps the most popular options strategy for many investors. The strategy involves writing call options against an existing stock position in order to collect the premium. The investor collects the premium if the shares end lower than the strike price or gives up their existing stock at the strike price if shares are trading higher. Read more