A Long-term Equity AnticiPation Security (LEAPS) is essentially an option with a much longer term than traditional stock or index options. Like options, a stock-related LEAP may be a call or a put, meaning that the owner has the right to purchase or sell shares of the stock at a given price on or before some set, future date.
Unlike options, the given date may be up to 2.5 years away. LEAP symbols are three alphabetic characters; those expiring in 1998 begin with W, 1999 with V.
LEAP is a registered trademark of the Chicago Board Options Exchange.
Article Credits:
Contributed-By: Chris Lott