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Strategies & Market Trends : Options

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To: DM who wrote (2917)2/13/2000 11:24:00 PM
From: SecularBull  Read Replies (2) of 8096
 
Without any significant premium left on leaps, if you are able to exercise (a.k.a. have the cash to do it), it is a good thing to do in terms of margin. Leaps are not marginable, and equity is. This particular strike was valued at $72, and represented a sizeable investment at current value. Converting it to equity allowed me to move that value (plus the strike) to equity from options.

It was principally a margin issue. I remain highly bullish on Level 3.

Hope this helps.

LoF
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