LEAPS Basics
LEAPS were created in 1990. A LEAP is basically a long-term option, or those with 9+ months before expiration. There are very few similarities between traditional options and LEAPS. Their contract specifications are the same, and do not require a special trading account to be used.
Option symbols
LEAPS have a difference set of option symbols for them. The first letter of the LEAP symbol is normally L, V, W or Z. At 9 months before expiration LEAPS symbols are renamed to those of traditional options.
| Examples | |
| Issue | Symbol |
| Coca Cola, April 2002 50 call | KODJ |
| Coca Cola, January 2004 50 LEAP call | LKODJ |
| IBM, April 2002 100 call | IBMDT |
| IBM, January 2004 100 LEAP call | LIBAT |
| Johnson and Johnson, April 2002 60 call | JNJDL |
| Johnson and Johnson, January 2004 60 LEAP call | LJNAL |
| International Paper, May 40 put | IPQH |
| International Paper, January 2004 40 LEAP put | LNPMH |
