Chapter 25: LEAPS 389 
delta indicate that the January 90 LEAPS will move by a larger percentage than the 
January 80 and therefore would be the better buy. 
PUT DELTAS 
Many of the previous observations regarding deltas of LEAPS calls can be applied to 
LEAPS puts as well. However, Figure 25-5 changes a little when the following for­
mula is applied. Recall that the relationship between put deltas and call deltas, except 
for deeply in-the-money puts, is: 
Put delta = Call delta - 1 
This has the effect of inverting the relationships that have just been described. 
In other words, while the short-term calls didn't move as fast as the LEAPS, the 
short-term puts move Jaster than the LEAPS puts in most cases. Figure 25-6 shows 
the deltas of these options. 
The vertical axis shows the puts' delta. Notice that out-of-the-money LEAPS 
puts and short-term equity puts don't behave very differently in terms of price 
change (bottom right-hand section of figure). 
In-the-money puts (when the stock is below the striking price) move faster if 
they are shorter-term. This fact is accentuated even more when the puts are more 
deeply in-the-money. The left-hand side of the figure depicts this fact. 
FIGURE 25-6. 
Put delta comparison, 2-year LEAPS versus 3-month equity options. 
90 
80 
70 t= 3 months 
0 60 
0 
1 50 
X 
Jg 40 
Q) 
0 
30 
20 
10 
O 70 80 90 100 110 120 130 
Stock Price