How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

MSFT 505.04

-0.2%

10:09 AM EST

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To: Jean M. Gauthier who wrote (26023)	7/14/1999 4:09:00 PM
From: ericneu	Read Replies (1) of 74651

"Thank you eric, but I mean, we are talking about a 2001 LEAP. 2001 Would 3 months hit me for more than 10% (closer to 15%) actually ?" --- Well, let's make it a math problem :). When you bought them (April) they had roughly 21 months until expiration. They've now got 18 months until expiration, so approximately 15% of the original time premium has gone by. You can't base it strictly on that, however. LEAPs will behave differently once they're down to 9 months or less of time premium, plus there's the "expectation fudge factor" I mentioned in my previous post. I've got some ZMFADs, and I've seen similar behavior. I'm hanging on until after earnings (or beyond). - Eric

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