LEAPS Call Options: Stock Alternative?

LEAPS, or long-term equity anticipation securities, are options with expirations longer than nine months. LEAPS calls can be traded as a leveraged stock alternative strategy.
May 23, 2025Beginner

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The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Investing involves risk, including loss of principal.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.

Multiple leg options strategies will involve multiple transaction costs.

Spread trading must be done in a margin account.

Margin borrowing involves substantial risk and is not suitable for all investors.  It's important that you fully understand your financial situation, the rules of margin borrowing, and conditions that may affect your investments. Please read the margin risk disclosure carefully.

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