Equity Long-term Equity AnticiPation Securities Specifications

Description Equity Long-term Equity AnticiPation Securities (LEAPS) are put and call options that have expirations of as long as three years from the time of listing. Conventional options are also traded on stocks for which LEAPS are available.
Trading Unit The minimum trade size is one option contract. Each contract represents 100 shares of the underlying stock.
Expiration Cycle LEAPS currently have expirations in January 2008 and January 2009.
Expiration The Saturday following the third Friday of the expiration month.
Last Trading Day One business day prior to expiration (normally a Friday).
Exercising Options American style. Options may be exercised on any business day prior to the expiration date.
Delivery Method if Exercised Exercise notices properly tendered on any business day will result in delivery of the underlying stock on the third business day following exercise.
Exercise Price Intervals Exercise (strike) prices are set at approximately 25% above, at and 20% below the value of the stock.
Option Premium Quotations Stated in dollars and cents. Minimum price variant $0.05 (nickel) for series trading under $3.00 and $0.10 (dime) for series trading $3.00 and above. Beginning on or about 01/26/07, some option classes will have different MPVs. For more information, view Amex's participation in the Penny Pilot Program.
Settlement of Exercise Three business days following exercise.
Position Limits Must be aggregated with conventional options on the same underlying stock. Hedge exemptions available.
Minimum Customer Margin for Uncovered Writers 100% of the market value of the option plus 20% of the value of the underlying security less any out-of-the-money amount, subject to a minimum of 100% of the market value of the option plus 10% of the value of the underlying security.
Trading Hours 9:30 a.m. to 4:00 p.m., New York time.
Trading System Specialist/Registered Options Trader.