Most options that are traded in America expire after a year or less. Investors that are interested in long-term options are able to buy special ones which expire in up to three years. These options are called LEAPS – Long-Term Equity Anticipation Securities.
There are LEAPS available on individual stocks – Equity LEAPS – and there are options that are connected to stock indices – Index LEAPS.
LEAPS are traded in the following exchanges:
- Chicago Board Options Exchange.
- Pacific Exchange.
- Philadelphia Stock Exchange.