leaps can be good investment vehicles depending on your investment goals. however, leaps can be highly illiquid depending on the company you hold a leap for. a leap is a way to leverage a long term investment. actually i wouldnt recommend investing in leaps unless you really understand the direction the company is headed in. one of the problems with leaps and options in general is that if you make a bad choice and the underlying goes away from the strike price you bought at you can lose your entire investment. however on the flip side, you can make some major coin if you're on the right side. i had a friend who was straddling yahoo just before microsoft made a bid for the company. he dumped the short side of his straddle before the announcement and was holding onto the long side. the underlying price and volatility skyrocketed and he made a fortune just by happenstance.
if you're actively seeking income it is much better to be trading volatility on derivatives. most people really dont understand the idea behind options pricing model and only trade the underlying value(ie the stock price). its alot of jokers that trade equities thinking they can do the same thing on options. its a whole different ball game. you're trading against smarter people with options than you are with equities.
the pricing model is a basic p-d-e's. partial differential equations utilizing underlying price/strike price, interest rates, time, volatility smart traders trade volatility. thats how the big boys make money. if you can understand how price and external market factors will affect volatility you can make quite a bit of money. i wouldnt recommend investing in leaps unless you're prepared to sit on your position for a long time.
another way to make money would be to write covered calls against the equities you already own. you have to be prepared to sell them if the calls reach the strike price at which you sell them. some investors are able to squeeze out an extra 5-10% a year by writing covered calls on the positions they have that are flat lining.
in general options can be a great way to make money online. that being said you need to learn how they work and what makes them tick. i wouldnt recommend it to someone who casually wants to learn. there is a steep learning curve and more often than not people make stupid trades and lose all of their capital.
if you do want to learn about it, i'd recommend reading Options as a Strategic investment by McMillan and options pricing and volatility by natenberg.