The Chicago Board Options Exchange on Friday said that it willadd Centocor Inc. to its list of long-term options, known asLEAPS (Long-term Equity AnticiPation Securities), along withsix other high-capitalization stocks.
Centocor is the first biotech stock on the list, which will include32 equities once the new stocks are added on Jan. 27. It willtrade under the symbol "COQ."
Criteria for inclusion on the list include stocks that have well-known names, are broadly held, are priced at more than $20,and meet certain average daily stock and option tradingvolumes, said John Roberts, first vice president at CBOE.
Centocor was chosen to represent the biotech group because itis the best-trading biotech stock on the Chicago options market,said Roberts.
LEAPS are designed to enable investors to take a long-termposition in stocks of up to two years. Regular options areusually no longer than a year.
For each stock, CBOE will list puts and calls at three prices, withexpirations in January 1993 and January 1994. The prices willbe the current stock price, and about 20 percent above andbelow the current price. LEAPS trade in units of 100 shares percontract, may be exercised any time prior to expiration andoffer settlement in stock.
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