Sierra,
Thanks for your post and I appreciate your confidence in me re. suggesting an Intel LEAPS.
Well, I try to refrain from offering (or sharing) such suggestions for fear of a potential detrimental effect on others who, without knowing who they are, may have vastly different risk tolerance, flexibilities in timeframes and resources.
But I can tell you some of my positions simply as a reference. As a holder of Intel long position, my option strategy is both aggressive and conservative--I go for the out-of-the money strike prices for optimal leverage, yet staying in a comfortable 18 months timeframe for immunity against fast time decay as well as short-term institutional manipulations.
From the fundamental point of view, 1999 is a year highly favorable to Intel's stock as Merced is around the corner and, barring any unannounced development, the company's dominance should be even more visible than now.
The 2000 LEAPS, to me, offer no advantages as the competitive dynamics are far from being clearly visible 2 1/2 from now. In additionm, the 2000 LEAPS are much more expensive while being less liquid.
I bought and sold and bought.....VNLAS (99 195) and VNLAS (99 205). i am betting on the scenario that, within 6-8 months, these options will become either at or in the money.
Regards,
Ibexx |
