SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Gorilla and King Portfolio Candidates

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Thomas Tam who wrote (8158)10/12/1999 1:33:00 AM
From: Uncle Frank  Read Replies (1) of 54805
 
That was a good summary for the uninitiated, TT, except for this curious passage:

your return on investment is based on a much smaller chunk of capital. Therefore the percentages can be huge but the absolute return would be roughly the same


Your assumption about the size of my LEAPS investment is absolutely incorrect. LEAPS usually cost about 1/3 of the underlying equity. I purchased 3 times as many LEAPS shares as I would had I bought the common. Therefore the larger % return also provides leverage to the absolute dollar return.

Other than that, I mostly agree with you and thank you for your effort.

uf
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext