Long-term Equity AnticiPation Securities (LEAPS) are put and call options on underlying stocks that have expirations of at least 9 months and as long as three years from the time of listing. When an option's expiration is less than 9 months away, the option trades under a different ticker symbol. Thus, on stocks for which LEAPS are available, conventional options with expirations of up to eight months also are traded.

Exercise is American: LEAPS may be exercised on any business day prior to the expiration date.

Trading Unit

The minimum trade size is one option contract. Each contract represents 100 shares of the underlying stock.

Expiration date

The Saturday following the third Friday of the expiration month.

Exercise price intervals

Initial exercise (strike) prices are set relative to the value of the underlying stock. Initial strikes are set approximately at the stock price and about 25% above and 20% below the value of the stock.

Minimum margin for uncovered writers

Premium plus 20% of the value of the underlying stock, reduced by any out-of-the-money amount to a minimum of premium plus 10% of the value of the stock.