How Long-Term Options Can Support Bigger, Slower, Smarter Trades
LEAPS stands for Long-Term Equity AnticiPation Securities—a mouthful, but the concept is simple. These are options contracts with expiration dates more than one year out, often extending up to two or even three years.
Most traders focus on short-term contracts. But when you're aiming for slower, more strategic trades—or want to control stock for less capital—LEAPS offer flexibility and time.
Here's when they make sense:
1. You believe in the long-term direction of a stock
Let’s say you think a stock is undervalued and will rise over the next 12 to 18 months. Instead of buying 100 shares, you could buy one LEAPS call and control the same movement with far less cash. You gain upside exposure while capping your downside to the premium you paid.
2. You want time to be on your side
Short-term options decay quickly. If the move doesn’t happen in time, you lose. LEAPS give you breathing room. You’re not racing against a five-day expiration window—you’re planning for a future move with months to work with.
3. You’re using them as a stock replacement
Some traders use LEAPS to replicate long-term stock ownership. It's a way to stay involved without tying up capital or taking on full downside risk. You still get leverage, but with more time to manage the position.
4. You want to build spreads or structured trades
LEAPS can be used to anchor multi-leg trades. Buying a LEAPS call and selling shorter-term calls against it is a popular way to create income while holding a bullish position. This is often called a diagonal spread.
The bottom line: LEAPS aren't for chasing quick gains. They're for traders who want longer windows to let their ideas play out—with structure, purpose, and less noise.
You don’t have to trade every day to be a trader.
Some of the sharpest moves I’ve made didn’t come from reacting to news or chasing short-term charts. They came from planning ahead, giving the trade time, and letting the market come to me.
That’s what SlingShot Trader is built on. You’ll learn when to go fast—and when to slow down. How to use time as a tool. And how to take positions like LEAPS and make them part of a real system, not just a long shot.
If you want to start thinking like a trader who’s building something bigger, it’s time to get into the process that makes that happen.
