what is the downside of leaps 
there are several specific downsides to leaps most often investors that buy leaps must put up more capital upfront at the beginning of the contract to pay for the initial premium in addition because they have more time until expiration leaps often cost more than traditional options the bottom linelaunched in 1990 by the chicago board options exchange cboe to meet investor demand leaps are now a mainstay of options trading leaps which stand for long term equity anticipation securities are simply listed equity call and put options that have initial expiration dates that are greater than one year and up to 39 months into the future as with all options leaps come with unique risks and investors should understand the potential risks and rewards of trading in them 