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.
Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 176.63+1.4%12:55 PM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: codawg who wrote (55174)12/20/1999 12:29:00 PM
From: Uncle Frank  Read Replies (1) of 152472
 
>> There is no difference in the Black-Scholes model for "options" vs. "leaps".

The equation is the same, but note that the time premium is a function of the square root of time. This gives an incredible advantage to LEAPS, codawg. And don't discount the tax advantages of LEAPS, as, unlike their shorter lived cousins, they are eligable for long term capital gains.

I'd suggest any of you who don't see the vast difference between calls and LEAPS read Harrison Roth's book.

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