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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic
INTC 39.50-3.1%3:59 PM EST
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To: TechnoWiz who wrote (13225)11/16/1997 1:45:00 AM
From: Sonki  Read Replies (2) of 27012
 
Hi wiz, thank you for alll the very thought provikng msgs you post.

i want to run this by you ...to get your thoughts.

this is my portfolio say starting feb 98.
55% stocks long term stocks 30% bonds and rest for trading (unplanned)

i hate bonds, i have been looking for bonds (safe mney) since last summer.

my stocks are life time possibly will go into next genrations.

now since i hate bonds this is what i want to do.

e.g. i can buy msft (~130) and sell a 99 leap for same strike price
for approx $25-30 this is approx 15-18% annual money. (these are apporx numbers, math is not important, just the idea).

my down side comes in if msft is trading below $100 after ~2 years.

this is much better then bond investment where u end up paying taxes
on income. yr 2000 leaps will incurr only 18% tax.

so this almost as safe as bond execpet if we go into a prolonged
bear market.

i can apply this idea to spy(spiders) and selling s&P500 leaps
giving me appox 13% per year.

vs. i can buy B- grade corp. bonds for 9%.

i wonder if you have any thoughts on putting my bond money in
stocks and selling leaps. As i have never seen a bear market
and don't know what would happen to pe in a worst case.
i.e. s&p trades at 21 pe. would u see them at may be 10-12 pe in a
worst case?

(remember i am only conerned re: 30% of my portfoilo) not my stocks.
thx for your thoughts... too bad i can't give u food for thoughts.
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