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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: im a survivor who wrote (25917)12/19/2000 1:54:34 PM
From: im a survivor  Read Replies (1) of 65232
 
RESEARCH ALERT-Goldman says AOL, Time Warner buys
biz.yahoo.com

Personally, I like the risk/reward ratio of the leaps. 2003 $40 strikes are awfully cheap and are 2 + years away...plenty of time for the new company to grit it's teeth and show what it can do. Considering they are ITM as we speak, have 2+ years to go, with a very low cost and premium, I would consider them....especially if your interested in aol, but are a little skeptical about what the new company can do. Heck, if aol does as good as the analysts expect, those leaps will be worth a bundle in 2 years...if aol drops off the face of the earth, your out a tad bit, as compared to owning the stock. I havent found too many ITM leaps with such a nice cheap premium and open interest is very high.

JMO

Keith
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