An acronym for Long-term Equity AnticiPation Securities. LEAPS are put or call options with expiration dates set as far as two and one-half years in the future. Like standard options, each LEAPS contract represents 100 shares of the underlying stock. LEAPS calls can provide an investor the opportunity to participate in the upward movement of a stock without making an outright stock purchase. LEAPS puts can provide medium to long-term insurance or hedge for stockowners in the event of a substantial decline in their stocks.