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Politics : Formerly About Applied Materials
AMAT 301.11+6.9%Jan 9 9:30 AM EST

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To: Henry D who wrote (40544)12/7/2000 9:33:10 AM
From: Tito L. Nisperos Jr.  Read Replies (1) of 70976
 
Henry D, The LEAP with the lower expiration price like the 50 has more Bang than the 80 early during the stock's climb; ... but later during the climb, the 80 has more Bang than the 50. That is because, for your money, you can control double the number of shares if you buy the 80 (now priced at 10/sh for the Jan 2002) than if you buy the 50 (now priced at 4 1/2 per sh). In other words, the Deeper in the money LEAPs will fare better if the advance of the stock takes longer in time like the last Bull Market when AMAT's advance lasted 18 months as opposed to the previous two advances that lasted just a year each.

...but for beginners, I recommend the lower expiration LEAPs .
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