I've got 2002 leap calls on qcom, csco, emc, aol, and twx. I have calls, as far out as possible, on those that don't offer leaps: jdsu, cree, and gmst.
Before you invest in leaps, be certain that you are a ltb&h. They have more volatility than the common, and when the common goes down, the leaps really go down. Same thing on the way up. What I have done is keep them in a separate account so I don't even look at them (well, I cheat a little, I peek when they are up).
The calls are more problemmatic, because they are shorter term, May through August. My bet is that the stock will appreciate significantly within the next 2-3 months, enough to make up my premium, before the time premium deteriorates. I would not really classify that as a ltb&h gg strategy.
Unless you are certain about what you want to do and the risk involved, just stay with the leaps and buy the common on those that don't offer leaps yet. |
