Basic Trading Information about LEAPS

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