LEAPS® are simply long-term options that expire up to two years and eight months in the future, as opposed to shorter-dated options that expire within one year.
LEAPS® grant the buyer the right to buy, in the case of a call, or sell, in the case of a put, shares of a stock at a predetermined price on or before a given date. Equity LEAPS® are American-style options. Therefore, they may be exercised and settled in stock prior to expiration. The expiration date for equity LEAPS® is the Saturday following the third Friday of the expiration month, which is typically in January.
LEAPS® are quoted and traded just like any other exchange-listed option. In fact, many of the features of LEAPS® are the same for shorter-term options:
Content Licensed from the Options Industry Council. All Rights Reserved. OIC or its affiliates shall not be responsible for content contained on Company’s Website, or other Company Materials not provided by OIC
Content licensed from the Options Industry Council is intended to educate investors about U.S. exchange-listed options issued by The Options Clearing Corporation, and shall not be construed as furnishing investment advice or being a recommendation, solicitation or offer to buy or sell ant option or any other security. Options involve risk and are not suitable for all investors