Long-Term Equity Anticipation Securities - LEAPS
Wednesday, February 11, 2015
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Long-Term Equity Anticipation Securities, known as LEAPS, are structured in the same way as standard options contracts, with the only difference being that their duration before expiration is longer than the maximum nine months offered by traditional options. The lifespan of a LEAPS contract ranges between one and three years, with the most common time frame being two years.
LEAPS are available on a range of stocks and indexes which are determined by the CBOE. These LEAPS options are distinguishable on the listings from regular options by a unique three-character ticker symbol.
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