How do LEAPS® differ from conventional options?
LEAPS® or Long-term Equity AnticiPation Securities are options, both calls and puts, with expirations as far out as two and one-half years. Conventional options will typically offer contracts with expirations up to nine months in the future. Currently, equity LEAPS® will have two series at any time with January expirations. For example, in August 2002, LEAPS® for a particular stock might be available with expirations of January 2004 and January 2005. Since equity LEAPS® expire only in January of these years, these LEAPS® will have different options “root symbols” to distinguish one year from another. For an explanation of LEAPS® cycles, visit our LEAPS® FAQ. Visit LEAPS® Conversions for a comprehensive list of current LEAPS® symbols. For information on various strategies using these versatile instruments, visit our Introduction to LEAPS®.
