The 14 Best Stocks For Leaps To Buy Now

Stock LEAPS (Long-Term Equity Anticipation Securities) are long-dated call options that give investors the right to buy shares at a predetermined strike price until a specific expiration date, typically extending up to two or three years.

LEAPS provide leveraged exposure to a stock’s price movement, potentially boosting returns. They allow investors to gain significant upside potential while limiting downside risk to the premium paid for the option.

Understanding LEAPS and their strategic applications can be a valuable addition to any investor’s toolkit.

What Are LEAPS?

LEAPS are a type of options contract with expiration dates that are farther out than standard options, often ranging from one to three years from the purchase date.

These instruments are particularly appealing for investors who anticipate substantial price movements in a stock over a longer time horizon but wish to avoid the larger capital outlay required to purchase the stock outright.

Benefits of LEAPS

• Leverage: LEAPS allow investors to control a large number of shares with a relatively small investment, magnifying potential returns.

• Limited Risk: The maximum loss is limited to the premium paid for the LEAPS, unlike owning the stock directly, where losses can be substantial.

• Time Decay: LEAPS experience slower time decay compared to short-term options, providing more time for the stock to move favorably.

Risks of LEAPS

• Premium Cost: LEAPS can be more expensive due to their extended duration.

• Market Volatility: High volatility can impact the premium of LEAPS, making them more expensive and risky.

• Expiration: If the stock does not move as anticipated within the given timeframe, LEAPS can expire worthless.

14 Best Stocks for Leaps of 2025 (Latest List)

Here are our top picks for the best stocks for LEAPS in 2025, based on current market trends, growth potential, and overall sentiment.

Nvidia (NASDAQ: NVDA)

Nvidia stands at the forefront of the artificial intelligence (AI) and graphics processing unit (GPU) industries, making it a compelling candidate for LEAPS in 2025.

The company’s dominance is underscored by its substantial market share in discrete GPUs, controlling approximately 90% of this segment.

This leadership is pivotal as data centers globally are projected to invest around $1 trillion over the next four years to upgrade infrastructure for AI computing, directly benefiting Nvidia’s revenue streams.

In the third quarter of 2024, Nvidia’s data center revenue more than doubled, surpassing $30 billion, highlighting its critical role in the AI revolution.

Analysts from Morgan Stanley and Wedbush Securities have adjusted their forecasts, setting price targets of $160, reflecting confidence in Nvidia’s sustained growth trajectory.

Furthermore, Nvidia’s innovative Blackwell GPUs have garnered significant attention from tech giants like Meta, Microsoft, OpenAI, and Google, with reports indicating these GPUs are sold out for the next 12 months, potentially adding between $5 billion and $8 billion to Nvidia’s sales in the fourth quarter.

This robust demand, coupled with Nvidia’s consistent outperformance of revenue forecasts, positions the company favorably for long-term investors utilizing LEAPS.

Apple Inc. (NASDAQ: AAPL)

Apple Inc. is a dominant force in the consumer tech sector, known for its innovative products and substantial market share. The company’s strategic acquisitions and product launches continue to drive its growth and market presence.

Apple’s financial stability and consistent growth make it an attractive candidate for a LEAP strategy.

The company’s ability to maintain income stability and steady financial growth is a significant factor for LEAP investors.

The company’s revenue has consistently grown year over year, driven by strong sales of its flagship products like the iPhone and Mac, as well as services like the App Store and Apple Music.

Apple’s implied volatility, a measure of the expected volatility of the stock, suggests potential for significant price movement. High implied volatility can be beneficial for LEAP strategies as it indicates the market’s anticipation of future price changes, which can enhance the value of long-term options.

Additionally, Apple’s robust financial health, innovative product pipeline, and strong brand loyalty position it well for continued growth. These factors combined with the company’s stock price trends make it a potentially compelling choice for LEAP investors looking to capitalize on long-term price movements.

Palantir Technologies (NYSE: PLTR)

Palantir Technologies, a leader in big data analytics, continues to secure significant government and enterprise contracts, reinforcing its position in the data-driven landscape.

Despite market volatility, Palantir’s stock has demonstrated resilience, gaining 1% year-to-date and an impressive 231% over the past 12 months, outperforming many peers in the tech sector.

The company’s involvement in defense and intelligence sectors provides a stable revenue base, although potential federal spending cuts pose a risk.

Notably, the Defense Department’s recent budget adjustments include prioritization of technologies like drones, aligning with Palantir’s expertise and offerings.

Analysts from William Blair highlight the potential for new Army contracts and the halting of rival platform developments as positive indicators for Palantir’s future growth.

These factors, combined with the company’s consistent innovation in data analytics, make Palantir an intriguing option for LEAPS investors seeking exposure to the expanding field of big data.

Microsoft Corporation (NASDAQ: MSFT)

Microsoft Corporation, a blue-chip stock, is well-suited for the LEAPS strategy due to its consistent performance and market leadership in software products and cloud computing services.

The company’s flagship products, including Windows, Office, and Azure, continue to dominate their respective markets, ensuring steady revenue growth.

Microsoft’s financial performance has been impressive, with continuous revenue growth and strong profit margins. The company’s extensive product and service portfolio, coupled with its strategic acquisitions, contribute to its market resilience and growth potential.

For LEAPS investors, Microsoft’s stock exhibits moderate implied volatility, reflecting the market’s expectation of significant price movements.

The stock’s performance, combined with the company’s solid fundamentals and future growth prospects, might make it an attractive option for a LEAP strategy.

Microsoft’s investments in cloud computing, artificial intelligence, and enterprise solutions are likely to drive its long-term growth. The company’s ability to innovate and adapt to changing market dynamics ensures its relevance and competitiveness, making it a potential candidate for LEAP investments.

Amazon.com, Inc. (NASDAQ: AMZN)

Amazon.com, Inc., widely recognized as the leading online retailer, has established itself as a dominant force in the tech and e-commerce sectors. The company’s extensive reach includes Amazon Web Services (AWS), a cloud computing platform that has become the backbone for numerous software applications, significantly diversifying Amazon’s revenue streams.

Amazon’s impressive market capitalization and continuous innovation have positioned it as one of the largest companies globally.

The company consistently reports substantial revenue growth, driven by its diverse business model encompassing e-commerce, cloud computing, digital streaming, and artificial intelligence.

Amazon’s stock is known for its significant price movements, making it a potential candidate for LEAPS. Investors utilizing LEAPS could benefit from Amazon’s ongoing growth and technological advancements, which may drive long-term value.

The company’s involvement in various high-growth sectors and its ability to adapt to market changes further enhance its potential.

Alphabet Inc. (NASDAQ: GOOG)

Alphabet Inc., the parent company of Google, is a multinational conglomerate specializing in internet-related services and products. Formed as a holding company in 2015, Alphabet oversees a diverse range of subsidiaries, including Google, which remains its most significant revenue generator.

Alphabet’s operations span several sectors, including digital advertising, cloud computing, and AI technologies. The company’s consistent revenue growth and profitability could make it a strong candidate for long-term investments, including LEAPS.

Alphabet’s focus on innovation and expansion into emerging technologies, such as artificial intelligence and autonomous vehicles, positions it for continued growth.

The stock’s implied volatility indicates the market’s expectations of future price movements, which can be advantageous for LEAPS investors. With its robust financial health, market leadership, and strategic investments in cutting-edge technologies, Alphabet may be a compelling choice for those looking to leverage the potential of LEAPS.

Broadcom (NASDAQ: AVGO)

Broadcom’s strategic initiatives and robust financial performance underscore its suitability for LEAPS investments.

The company’s recent announcement of a $10 billion share buyback program reflects confidence in its semiconductor and infrastructure software divisions, particularly amid increased investments in AI.

Broadcom’s acquisition of VMware for $69 billion has significantly bolstered its cloud infrastructure and enterprise software capabilities, positioning it to compete with major cloud service providers.

This acquisition, coupled with strong demand for custom AI chips from cloud computing companies seeking alternatives to Nvidia’s processors, has propelled Broadcom’s market capitalization beyond $1 trillion as of December 2024.

Analysts project revenue growth surpassing $55 billion by 2026, driven by advancements in 5G, AI, and data center infrastructure.

Furthermore, Broadcom’s innovative 3.5D eXtreme Dimension System in Package (XDSiP) platform technology enhances its AI portfolio, catering to the growing needs of hyperscale customers.

These developments, along with a projected stock price target of $1,250 by the end of 2025, highlight Broadcom’s potential for substantial long-term appreciation, making it a prime candidate for LEAPS strategies.

Tesla, Inc. (NASDAQ: TSLA)

Tesla, Inc., a leader in electric vehicles and renewable energy solutions, has revolutionized the automotive industry with its innovative approach to sustainable transportation.

Under the leadership of Elon Musk, Tesla has expanded its market presence and technological capabilities, making significant strides in both vehicle production and energy storage solutions.

Tesla’s market capitalization reflects its position as one of the most valuable automakers globally.

The company’s focus on innovation, including advancements in battery technology and autonomous driving, has driven substantial growth and positioned it as a key player in the shift towards sustainable energy.

For LEAPS investors, Tesla’s stock could present opportunities due to its volatility and potential for significant price movements. The company’s ambitious growth targets, continuous product innovation, and expansion into international markets may make it a suitable candidate for a LEAPS strategy.

Tesla’s ability to navigate industry challenges and capitalize on emerging trends in electric vehicles and renewable energy further underscores its potential for long-term value creation.

CrowdStrike (NASDAQ: CRWD)

CrowdStrike’s prominence in the cybersecurity sector positions it as an attractive option for LEAPS investors.

The company’s Falcon platform, which integrates AI, machine learning, and threat intelligence, offers real-time protection against cyber threats, addressing the escalating demand for robust cybersecurity solutions.

In the fourth quarter of fiscal 2025, CrowdStrike reported a 25% year-over-year increase in revenue, reaching $1.06 billion, with subscription revenue accounting for $1.00 billion of this total.

CEO George Kurtz emphasized the critical role of AI in cybersecurity, noting a 23% growth in annual recurring revenue to $4.24 billion, including a record $223.90 million in new net ARR. Analysts project a target price range of $300-$350 for CRWD stock by 2025, representing a potential upside of over 50%.

The company’s consistent innovation, expanding customer base, and the growing importance of cybersecurity in the digital age underscore CrowdStrike’s potential for long-term growth, making it a compelling choice for LEAPS investments.

Meta Platforms, Inc. (NASDAQ: META)

Meta Platforms, Inc., formerly known as Facebook, Inc., is a leading American technology company led by Mark Zuckerberg. Meta operates several key divisions, including Facebook, Instagram, WhatsApp, and Oculus.

The Facebook division includes the company’s flagship social networking platform, while Instagram and WhatsApp boast billions of users globally. Oculus focuses on virtual reality, producing both hardware and software for immersive VR experiences.

Meta generates substantial revenue primarily through advertising on Facebook and Instagram. Its extensive user base and advanced data analytics capabilities make it an attractive platform for advertisers.

The company continuously innovates, with significant investments in virtual reality, augmented reality, and other emerging technologies. This diversification positions Meta well for future growth.

Investors consider Meta a potential candidate for LEAPS due to its market dominance and continuous innovation.

The company’s stock has shown notable price movements, offering potential for long-term options strategies. By leveraging LEAPS, investors could benefit from Meta’s ongoing technological advancements and strong market presence.

Johnson & Johnson (NYSE: JNJ)

Johnson & Johnson, a multinational corporation founded in 1886, specializes in healthcare products and pharmaceuticals. The company has a diverse portfolio, including medical devices, pharmaceuticals, and consumer health products. Some of its well-known brands include Band-Aid, Tylenol, Neutrogena, and Johnson’s Baby products.

J&J’s long-standing reputation and diverse product range make it resilient against competition and stock market fluctuations. The company’s strong fundamentals and consistent dividend payments highlight its stability.

Johnson & Johnson has a history of over 60 years of consecutive dividend growth, reflecting its commitment to returning value to shareholders.

For LEAPS investors, Johnson & Johnson offers a combination of stability and potential for growth. The company’s continuous innovation in the healthcare industry, coupled with its robust financial health, could make it a solid choice for long-term options strategies. With a strong track record and ongoing developments, J&J is well-positioned for future success.

Procter & Gamble Co. (NYSE: PG)

Procter & Gamble Co. (P&G) is a global consumer goods corporation headquartered in Cincinnati, Ohio. Founded in 1837 by William Procter and James Gamble, P&G has grown into one of the largest and most successful consumer goods companies worldwide.

The company operates across five main divisions: Fabric and Home Care; Baby, Feminine, and Family Care; Beauty; Grooming; and Health Care.

P&G’s extensive product portfolio includes well-known brands such as Tide, Crest, Gillette, Pampers, and Olay.

The company’s products are sold in over 180 countries, making it a global leader in the consumer goods industry. P&G’s strong brand recognition and market reach contribute to its consistent revenue growth and stability.

Procter & Gamble could be an attractive stock for LEAPS due to its market dominance and consistent performance. The company has a long history of paying dividends, with 66 years of consecutive dividend growth.

P&G’s solid financial health and strategic positioning in the consumer goods market make it a potential choice for long-term options strategies. Investors might be able to leverage LEAPS to benefit from P&G’s ongoing growth and market stability.

Advanced Micro Devices (NASDAQ: AMD)

Advanced Micro Devices (AMD) has emerged as a formidable competitor in the semiconductor industry, challenging giants like Intel and Nvidia.

The company’s success is attributed to its high-performance CPUs and GPUs, which have gained significant traction in gaming, data centers, and AI applications.

AMD’s strategic focus on innovation and efficiency has resulted in products that offer competitive performance at attractive price points, leading to increased market share.

The company’s involvement in AI and machine learning is particularly noteworthy, as these fields are experiencing exponential growth. AMD’s GPUs are increasingly being adopted for AI workloads, providing the computational power necessary for complex data processing tasks.

Furthermore, AMD’s partnerships with major technology firms to supply processors for next-generation gaming consoles and data center solutions highlight its expanding influence in the industry.

The semiconductor sector’s cyclical nature and AMD’s commitment to research and development suggest potential for continued growth.

These factors, combined with AMD’s strong financial performance and product pipeline, make it an appealing candidate for LEAPS investors looking to capitalize on long-term trends in technology and computing.

Visa Inc. (NYSE: V)

Visa Inc. is a global payments technology company that facilitates electronic transactions between consumers, businesses, and governments worldwide.

Its extensive payment network allows cardholders to make purchases at merchants globally using Visa-branded debit, credit, and prepaid cards.

Operating in over 200 countries and territories, Visa connects consumers, merchants, financial institutions, and governments, ensuring secure and efficient electronic payments.

Visa has a strong focus on innovation, continuously investing in new payment technologies such as mobile payments, contactless payments, and digital wallets. These advancements enhance the user experience and expand Visa’s fintech market reach.

Additionally, Visa has launched initiatives to expand financial inclusion and improve access to electronic payments in emerging markets, promoting economic growth and stability.

Visa’s robust financial health is reflected in its high gross profit margin and substantial market capitalization. The company consistently records year-over-year revenue growth and has a long history of paying dividends, with many years of consecutive dividend growth.

This commitment to returning value to shareholders, coupled with an implied volatility that makes it suitable for long-term options strategies like LEAPS, positions Visa well for sustained growth and potential for investors.

What Makes a Stock Ideal for LEAPS?

Not all stocks are created equal when it comes to LEAPS. The best stocks for leaps generally share these characteristics:

• Strong long-term growth potential: Companies that are expected to grow significantly over the next several years offer the most upside potential for LEAPS. These are typically firms that are innovating, expanding into new markets, or leading their industry in performance.

• High trading volume and liquidity: Stocks with active trading and tight bid-ask spreads ensure that LEAPS contracts are easier to buy and sell without significant price slippage. Liquid stocks also typically have more active options chains, which translates to more favorable pricing.

• Volatility with an upward bias: Volatility is necessary to move options pricing, but ideal LEAPS candidates are stocks that show historical patterns of bouncing back or trending upward. A stock that’s volatile in the right direction offers an attractive setup for long-term calls.

• Industry leadership or disruptive innovation: Companies that dominate their sectors or are introducing breakthrough products or services often experience extended periods of price appreciation. Such momentum-driven stories are perfect for the longer time horizon LEAPS provide.

• Strong financial fundamentals: A solid balance sheet, consistent revenue growth, and manageable debt levels can serve as indicators that a company has staying power. For LEAPS investors, it’s important that the company remains fundamentally sound over the life of the option.

• Positive analyst sentiment and institutional interest: Analyst upgrades, positive earnings forecasts, and strong institutional ownership often reflect growing investor confidence. These can act as catalysts that push stock prices higher over time.

• Catalysts on the horizon: Product launches, mergers and acquisitions, international expansion, or new regulatory approvals can significantly impact stock prices over a long time frame. LEAPS give investors the ability to capitalize on these catalysts with ample time for the story to unfold.

By evaluating stocks using these criteria, investors can increase their chances of selecting LEAPS that align with long-term trends and investment goals.

Are Stocks for LEAPS a Good Investment?

Stocks for LEAPS can be a good investment due to their potential for leveraged exposure to price movements, strategic flexibility, and extended time frames to realize gains. Here’s a detailed analysis of why stocks for LEAPS can be advantageous, with key considerations and benefits.

Leveraged Exposure to Price Movements

One of the primary advantages of LEAPS is their ability to offer leveraged exposure to a stock’s price movement. By purchasing LEAPS call options, investors can control a larger number of shares with a smaller investment compared to buying the underlying stock outright.

This leverage can potentially lead to significant gains if the stock price rises substantially over the option period. For example, if a blue-chip stock like Apple or Microsoft experiences a notable price increase, the corresponding LEAPS call options could yield substantial returns.

Risk and Reward Dynamics

However, it’s important to understand the risk-reward dynamics of LEAPS. If the underlying stock does not reach the strike price by the expiration date, the options may expire worthless, resulting in a total loss of the investment.

Therefore, careful selection of the underlying stock and thorough market analysis are crucial. Investors should look for companies with solid fundamentals, positive growth prospects, and strong market positions.

Blue-chip stocks and well-established mid-cap stocks often fit these criteria well, offering a balance of stability and growth potential.

Strategic Uses of LEAPS

LEAPS can be used in various strategic ways beyond simple speculation. Here are some key uses:

Hedging Long-Term Positions

LEAPS can serve as an effective hedge against long-term stock positions. For instance, if an investor holds a substantial amount of stock in a particular company, purchasing LEAPS put options can provide downside protection.

If the stock price falls significantly, the gains from the put options can offset the losses in the stock position, thus managing risk effectively.

Portfolio Diversification

LEAPS can also contribute to portfolio diversification. By incorporating options on different companies or sectors, investors can diversify their exposure and reduce overall portfolio risk. This approach is particularly useful when stock market conditions are uncertain and the outlook for specific sectors or companies is mixed.

Generating Income

Writing LEAPS covered calls is another strategy to generate income. In this approach, an investor who owns the underlying stock sells LEAPS call options against their stock holdings. The premiums received from selling the calls provide immediate income.

If the stock price remains below the strike price, the investor retains both the stock and the premium. If the stock price rises past the strike price, the investor may need to sell the stock at the strike price, potentially missing out on further gains.

Suitability for Different Investors

LEAPS are suitable for various types of investors, including hedge funds and individual investors. Hedge funds often use LEAPS to gain leveraged exposure to stock movements or to hedge other positions in their portfolios.

Individual investors can use LEAPS to pursue growth opportunities with a smaller capital outlay or to hedge against potential downturns in their long-term investments.

Final Thoughts

Overall, LEAPS can be a valuable tool for investors seeking to enhance their portfolio strategies. They offer the potential for significant returns, portfolio diversification, and risk management. However, it is essential to conduct thorough research and consider the risks involved, especially the possibility of options expiring worthless.

By carefully selecting blue-chip and mid-cap stocks with strong fundamentals and growth prospects, investors can maximize the benefits of incorporating LEAPS into their investment strategies.

Stocks for Leaps FAQs

How Do You Pick a Stock for LEAPS?

Selecting a stock for LEAPS involves evaluating several factors, including the stock’s fundamentals, implied volatility, and liquidity. Focus on companies with strong financial health, consistent revenue growth, and a solid market position. High trading volume is essential as it ensures easier entry and exit from the position.

Additionally, consider the stock’s implied volatility; higher volatility can mean greater potential price movement, which is beneficial for trading options.

What Is the Best Delta for LEAPS?

A delta of 0.70 or 0.80 is often considered ideal for LEAPS. This delta indicates that the option will move approximately 70-80% of the stock price change, offering a good balance between risk and reward. A higher delta suggests a higher likelihood that the option will expire in-the-money, making it a preferred choice for long-term investors.

What Are LEAPS Options?

LEAPS (Long-Term Equity Anticipation Securities) are options contracts with expiration dates extending up to three years. These options provide investors with a way to gain leveraged exposure to a stock’s price movement over an extended period. They are useful for strategies requiring more time to develop, allowing investors to benefit from long-term trends.

How Do LEAPS Options Differ From Traditional Options?

Traditional options typically have expiration periods ranging from a few weeks to several months. LEAPS options, however, have expiration dates usually one to three years in the future. This longer time frame allows investors more time for their investment thesis to play out and to capitalize on long-term trends.

What Is the Difference Between LEAPS Call Options and LEAPS Put Options?

• LEAPS Call Option: This option gives the investor the right, but not the obligation, to buy a stock at a specified strike price before the option expires. It is typically used when the investor expects the stock price to rise over the long term.

• LEAPS Put Option: This option gives the investor the right, but not the obligation, to sell a stock at a specified strike price before the option expires. It is often used when the investor anticipates a potential decline in the stock price over the long term.

How Can LEAPS Options Be Used in an Options Strategy?

LEAPS options can be integrated into various strategies:

• Long-Term Position: Investors can use LEAPS call options to establish a long-term bullish position on a stock, gaining leveraged exposure without committing the full capital required to purchase the stock outright.

• Hedging: LEAPS put options can serve as a hedge against potential declines in a stock portfolio, providing downside protection over an extended period.

• Covered Calls: Investors holding a long-term stock position can sell LEAPS call options against their shares to generate additional income through premiums.

• Bull Call Spreads: This involves buying LEAPS call options at a lower strike price while simultaneously selling call options at a higher strike price, aiming to profit from the difference in premiums.

Can LEAPS Be Used for Short Selling?

Yes, LEAPS put options can be used as an alternative to shorting. By purchasing a LEAPS put option, an investor can benefit from a decline in the stock price without the unlimited risk associated with traditional short selling. This strategy limits the potential loss to the premium paid for the put option while allowing for significant upside if the stock declines.

Do LEAPS Options Pay Dividends?

No, LEAPS options do not pay dividends. Dividends are paid to shareholders who own the underlying stock. However, the potential impact of dividends on the stock price is often reflected in the option’s premium. Investors holding LEAPS options should be aware of upcoming dividend payments as they can influence the stock’s price movement.

What Are the Risks Associated With LEAPS Options?

The primary risk with LEAPS options is that if the underlying stock does not move in the anticipated direction by the expiration date, the option can expire worthless, resulting in a loss of the premium paid.

Additionally, options can be subject to time decay, where the option’s value decreases as the expiration approaches. It’s essential to have a well-researched strategy and to monitor regularly to mitigate these risks.

How Do LEAPS Options Fit Into a Long-Term Investment Strategy?

LEAPS options can complement a long-term investment strategy by providing leverage and flexibility. They allow investors to gain exposure to significant price movements with a smaller capital outlay compared to buying the stock outright.

LEAPS can also be used to hedge long-term positions, generate additional income through covered calls, and capitalize on long-term market trends. Their extended expiration timelines make them a versatile tool for long-term investors seeking to enhance their portfolio performance.