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Strategies & Market Trends : Options

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To: waverider who wrote (1765)1/27/2000 4:01:00 AM
From: kcmike  Read Replies (1) of 8096
 
Diamond,

New lurker to this thread with a quick thought ...

Yes, that will give you more leverage, but just remember ...

If you sell 1000 shares and buy the 2002 150 Leaps, you will need to price of the stock to rise to at least $235/share before you would actually start getting a higher return than if you had just kep the stock.

Also, if this were in a margin account, you would have a tremendouse amount of buying power with the 1000 shares long, as opposed to the ZERO margin that options give you.

I hope I stated this correctly!

Mike
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