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Pastimes : G&K Investing for Curmudgeons
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To: Uncle Frank who wrote (5744)9/1/2000 4:02:12 PM
From: tekboy  Read Replies (2) of 22706
 
the more I think about the strategy described in this post the more I like it. Let me see if I've got it straight:

1. Buy LEAPS calls, either ATM or OTM.

2. Let them appreciate.

3. When there has been substantial appreciation, roll out some into the same number of contracts at a higher strike (ATM or OTM) and/or later expiration.

4. Sell the remainder, take the profit off the table.

it allows you to profit from continued upward movements and derivative leverage while protecting your profits. Only real downside is the need to pay ST cap gains. simple, sensible, interesting.

ctb/A
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