Intel Corporation (INTC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Intel Corporation (INTC)

INTC 47.67

-2.1%

12:35 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: John Haestad who wrote (3211)	9/9/1996 10:04:00 PM
From: JAMES HARRIS	of 186894

Again, getting back to making money on INTC, I see you are into the LEAPS. Question...do you have any idea why the INTC Warrants (INTCW) are trading at such a low premium...$2.00 as of today's close. Back in Dec.1995 the premium was $9.00....and even a lot more earlier in 1995. Since the Warrants don"t expire until 1998 you can double your leverage by buying the Warrants rather than the Common Stock. The Warrants closed today at $45.25 up $2.125 and the stock closed at $83.50 up $2.25. If the stock does run 20 points you can get twice the ride by owing two warrants instead one share of common at minimal additional investment. (Each warrant entitles you to buy one share of common for $40.25) Plus, if the premium widens on the Warrants, as it should if INTC takes off again, you can do even better. If you or anyone else sees something wrong in my logic, please post an answer. Thanks much!

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next