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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 107.76+1.2%Nov 7 9:30 AM EST

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To: Zeev Hed who wrote (38392)3/19/2000 3:17:00 PM
From: John Walliker  Read Replies (1) of 93625
 
Zeev,

...there is not much rationale in holding leaps with such high premiums at this time, and these will be exercised, forcing the holders of the stock (those that wrote, hopefully, covered leaps) to replasce the stock taken away.

My position is entirely in LEAPS. They are now so DITM that there is hardly any premium left anyway. There is no point in exercising before 6 April because that would bring forward the UK tax liability (40%) by one year for the ones that I would have to sell to exercise the rest. (I have sold about 20% of my position though - just in case.)

I always follow your analysis with interest - but make my own decisions as I find timing very hard and am strongly influenced by tax considerations.

John
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