What does "LEAPS" stand for in options trading?

LEAPS stands for Long-term Equity Anticipation Securities. This term refers to a specific type of options contract that has an expiration date that is typically longer than one year from the date of issuance. LEAPS allow investors to have extended exposure to the price movement of an underlying asset, providing opportunities for longer-term strategic investing. This distinguishes them from standard options, which usually have shorter durations. By leveraging LEAPS, investors can benefit from significant price movements over a longer time horizon while employing various strategies, including hedging and speculation.

The other choices do not accurately reflect the terminology used in options trading, and therefore do not convey the correct meaning associated with LEAPS.