Tony,
respectfully, if you dont understand what LEAPS are, dont invest in them.
FWIW, the difference is twofold. One, your potential gains (and losses!) are multiplied, Two, LEAPS expire (in Jan 2001 in this case). So you you could be caught out by, for example a sudden dip in the stock market in late 2000. You dont have the same option to sit and hold (not to the same extent anyway) as with shares.
That is not to say they might not be a good investment, but with options you need to be sure you understand the risks. The extra potential gain is bought at the expense of greater risk.
JMHO, good luck whatever you do,
BTW, yes tomorrow is the day of the split. At market open, you will own twice the no of shares you do today. Their value enhanced by those people who think 2 shares at 1/2 the price are worth more than 1 share. Beats me but I'm not complaining!
Joe |
