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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who wrote (22017)4/2/2000 4:57:00 AM
From: Uncle Frank  Read Replies (1) of 54805
 
Ammendment to post #22019 (LEAPS strategy discussion with Tinker):

3/31
SYMBOL STRIKE EXPIRY CLOSING BID* DECAY
ZRGAD $20 1/01 $3.75 0
YVQID $20 9/00 $2.75 -26.7%
YVQFD $20 6/00 $1.75 -53.3%
YVQED $20 5/00 $1.0625 -71.7%
YVQDD $20 4/00 $0.3125 -91.7%


In the event the price of the underlying equity, gstrf, remains constant, ZRGADs, which have 9 months remaining, will lose over 26% of their value when they have 6 1/2 months remaining, and over 53% of their value at 3 1/2 months. Wouldn't you characterize that as "extreme dissipation"?

* source: Fidelity Investments
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