long-term equity anticipation securities

Long-Term Equity Anticipation Securities

Stock options with expiration of two to three years following issue. Most stock options expire nine months after issue; an advantage to LEAPS is the fact that there is a longer period of time for a desired price movement to take place, maximizing the possibility of profit. However, LEAPS are more expensive than other stock options.

long-term equity anticipation securities (LEAPS)

Options that carry expiration dates of up to two years.

Long-term equity anticipation securities (LEAPS).

These long-term options on stocks have expiration dates of up to three years rather than the shorter terms of most stock options, which are never longer than nine months.

The benefit of LEAPS, from an investor's perspective, is that there's more time for the price movement you anticipate to occur.

However, LEAPS are available on fewer underlying stocks than standard options, and they are generally more expensive than the shorter term options on the same security.

References in periodicals archive ?
The Exchange will list options and long-term equity anticipation securities on the Dow Jones Industrial Average (DJX), Dow Jones Transportation Average (DTX) and Dow Jones Utility Average (DUX).
CINCINNATI -- Earlier this week, we discussed the pros and cons of trading Long-term Equity AnticiPation Securities, otherwise known as LEAPS, in the latest edition of Options 101.
CINCINNATI -- In yesterday's edition of Options 101, we analyzed a happy medium between aggressive, short-term options trading and traditional stock buying: Long-term Equity AnticiPation Securities, more commonly referred to as LEAPS.
The Amex trades options on 30 broad-based and sector indexes and 963 domestic and foreign stocks, as well as Long-term Equity AnticiPation Securities (R) (LEAPS) on 114 stocks.
In addition, the AMEX trades Standard & Poor's Depositary Receipts(R) (SPDRs(R)) and 467 stock options, including 151 options on over-the- counter stocks, 51 Long-term Equity AnticiPation Securities (LEAPS) and 24 stock options on American Depositary Receipts (ADRs), as well as on 21 broad-based and sector indexes.
In addition, the AMEX trades Standard & Poor's Depositary Receipts (SPDRs(R)) and 448 stock options, including 143 options on over-the- counter stocks, 50 Long-term Equity AnticiPation Securities (LEAPS(R)) and 23 stock options on American Depositary Receipts (ADRs), as well as on 21 broad-based and sector indexes.
In addition, the Exchange trades Standard & Poor's Depositary Receipts (SPDRs)(R); 434 stock options, including 135 options on over-the-counter stocks, 52 Long-term Equity AnticiPation Securities (LEAPS)(R) and 23 options on American Depositary Receipts (ADRs); as well as options on 20 broad-based and sector indexes.
In addition, the Exchange trades Standard & Poor's Depositary Receipts (SPDRs)(R); 432 stock options, including 134 options on over-the-counter stocks, 52 Long-term Equity AnticiPation Securities (LEAPS)(R) and 23 options on American Depositary Receipts (ADRs); as well as options on 20 broad-based and sector indexes.

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