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Strategies & Market Trends : Tech Stock Options

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To: Snowshoe who wrote (2813)6/23/1996 7:26:00 PM
From: Judy   of 58727
 
On LEAPS and synthetic options strategies

Greg, after the beating the techs have taken during the past two weeks, there are some bargains for the picking ... not just semis but the whole spectrum of quality techs. Since I don't have deep, deep pockets using options for leverage is very attractive. In addition to simple leaps, I'm also thinking about a synthetic long stock strategy where one simulates the purchase of a stock through the purchase of a call leap and the writing of a put leap. There are several advantages in using this strategy. Capital requirements for holding a synthetic stock position are lower, in most cases, than purchasing the actual stock...especially true when the price of the underlying stock is high, like for most of the quality semis and techs.

I'll continue this discussion later on the other options thread with Tom. BTW, thanks for the info on 1999 leaps. I agree that 1999 could be a relatively poor year for the stock market. After all, if Bill Clinton win ... Hillary will be back with a vengence.

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