Recently was on a phone interview and getting into very basics of options strategy and different ways of hedging. Was asked to compare LEAPS (Long-term equity anticipation securities) to basic call options.
Is there any difference between a long-term call option that expires a year and a half out and a LEAP call? Or is it simply just that call options are generally used for a shorter time horizon, but a call with an expiration pretty far out is the exact same as a LEAP call.
| +260 | Why UBS Is the Worst Place to Start Your IB Career | 40 | 1d |
| +216 | UBS 2nd Year Analyst Q&A (2026) | 41 | 5h |
| +94 | What's your craziest "hardo" story? | 16 | 14h |
| +62 | Indiana University Fraternity Pipelines | 36 | 2d |
| +52 | Rogo AI | 22 | 8h |
| +49 | Elite Boutique interview questions | 17 | 1d |
| +48 | Suspended for a Year | 19 | 3d |
| +47 | Wolf of Wall Street vs. Reality: Anyone else feel scammed by the movies? | 18 | 7h |
| +30 | Rate my non-target resume | 15 | 8h |
| +24 | RX Firm Lateral Advice | 15 | 12h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
my impression was always LEAPS have duration of more than 1 year and calls are less than 1....variation with risk, etc applies but the basics are duration
LEAP = call with long time to expiration... not sure if there is a definitive point where you would call an option a leap vs a call, but i usually think of leaps as call options with >1 yr to expiration
LEAPs also only expire in January if I recall correctly
Officiis illum repudiandae totam exercitationem odio doloremque. Perferendis autem quia ut ea ipsa dolores molestiae.
Sequi dolorum tempore aliquid rerum ea. Adipisci fugit eligendi itaque qui labore quia animi. Pariatur non aut laboriosam unde sit et natus. Quam omnis architecto in officia consequatur.
Ab et similique sapiente unde molestias dolores non et. Odio et ut aut aspernatur placeat officia dolor. Sit in molestiae adipisci culpa cum. Aut vero dolorem fugiat quasi dolorem ut delectus. Vel suscipit voluptas voluptas minima.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...