If you buy shares of growth stocks that you’re bullish on, you should know about this alternative of buying LEAPS.

LEAPS are long term equity anticipation securities.

You can buy these options with an expiration date up to 3 years out. LEAPS can provide huge returns but they can also result in huge losses. LEAPS should be used when you think a stock will be worth more in the future.

When buying LEAPS, you do not need as much capital as if you were buying shares of stock.