American Stock Exchange Introduces LEAPS on Unisys and Japan Index

Strategic Insights -

The American Stock Exchange has announced its plans to begin trading Long-term Equity AnticiPation Securities (LEAPS) on the listed stock of Unisys Corporation and the Japan Index, a price-weighted index of 210 stocks trading on the Tokyo Stock Exchange. This move is a significant development in the Exchange's efforts to offer investors new opportunities for trading and hedging. The introduction of LEAPS on Unisys and the Japan Index will provide investors with a broader range of tools to manage risk and capitalize on market trends.

Key Takeaways:

  • The American Stock Exchange will begin trading LEAPS on Unisys Corporation on December 19, with strike prices of 5, 7-1/2, and 10, and expirations in July 1997.
  • The Japan Index, created by the American Stock Exchange in 1990, is a price-weighted index of 210 stocks trading on the Tokyo Stock Exchange, and the Exchange will begin trading LEAPS on the index with strike levels of 175, 200, and 225, and expirations in March 1997.
  • Unisys Corporation, based in Blue Bell, Pennsylvania, is a leader in designing, manufacturing, and selling computer-based information systems, with products including mainframes, workstations, printers, and storage systems, and services including technology planning and application development.
  • The AMEX is a leader in listing warrants on foreign indexes and currencies, hybrid debt instruments, and other structured products, and trades options on 20 broad-based and sector indexes and 567 stocks.
  • Spear, Leeds & Kellogg is the specialist unit for both the Unisys and Japan Index LEAPS.
  • The introduction of LEAPS on Unisys and the Japan Index is a significant development in the Exchange's efforts to offer investors new opportunities for trading and hedging.

Statistics:

  • LEAPS on Unisys Corporation will have strike prices of 5, 7-1/2, and 10, and expirations in July 1997.
  • LEAPS on the Japan Index will have strike levels of 175, 200, and 225, and expirations in March 1997.
  • The Japan Index, a price-weighted index of 210 stocks trading on the Tokyo Stock Exchange, was created by the American Stock Exchange in 1990.
  • Unisys Corporation is based in Blue Bell, Pennsylvania, and designs, manufactures, and sells computer-based information systems.
  • The AMEX trades options on 20 broad-based and sector indexes and 567 stocks, including 218 over-the-counter stocks, 32 American Depository Receipts (ADRs), and 60 LEAPS.

Sources:

  • PRNewswire, "American Stock Exchange Announces LEAPS on Unisys and Japan Index" (December 18, 1995)
  • Unisys Corporation, company profile (Blue Bell, PA)
  • American Stock Exchange, press release (December 18, 1995)
  • Daniel Noonan, American Stock Exchange, phone: 212-306-1647, email: dnoonan@amex.com