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Politics : Formerly About Applied Materials
AMAT 281.58-3.6%Jan 8 3:59 PM EST

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To: Lee Penick who wrote (13536)12/17/1997 10:49:00 PM
From: Jacob Snyder  Read Replies (1) of 70976
 
Lee: you're right.

That changes the results. If the stock doubles, then the margin strategy and the LEAPs (Jan.2000 calls @30 strike price) end up with almost identical returns. In-the-money calls still make more money, at less risk. If the stock triples, then the LEAPs do quite a bit better than margin, 46K vs. 39K. Thanks for catching my error.
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