Are LEAP options considered “safer” or still basically gambling vs just buying shares?
I’m trying to understand where LEAP options fit for a long-term investor.
From what I get, LEAPS (long-dated options, usually 1–2+ years out) are supposed to give you long-term exposure to a stock with less capital upfront. But at the same time, they’re still options at the end of the day, so there’s time decay and the possibility of losing 100% if things don’t go your way.
So I’m wondering...are LEAPS actually considered less risky than short-term options or are they still basically gambling compared to just buying shares? What’s the real advantage of LEAPS vs owning the stock outright? In what scenarios would a long-term investor choose LEAPS over just buying shares?
Trying to figure out if LEAPS are a smart tool for long-term exposure or just a more drawn-out way to take on option risk.