re: LEAPs:
I'm going to wait till the 2003 calls are available. I think that'll be in mid-July. Unlikely the stock will run away from us before then. I like to get the longest possible time on my LEAPs, to make them a better proxy for the stock. Reduces risk, as well.
And, the stock needs to be a bit lower (31-35), for me, before I stop buying the stock, and instead buy the LEAPs. The risk/reward doesn't tilt in favor of LEAPs until I am certain the stock will double over the life of the LEAPs, and be well in the money. We aren't there, yet, with 2002 calls and WCOM at 42. 2003 calls and 35, I'm a lot more certain. I'll be buying strike prices of about 50. There is no need to hurry, especially since the stock closed below support (42) today. |
