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Technology Stocks : Intel Corporation (INTC)
INTC 40.51+0.4%Dec 9 3:59 PM EST

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To: Road Walker who wrote (180766)4/13/2005 4:22:57 PM
From: Amy J  Read Replies (2) of 186894
 
Yikes. Only in the scenario of a protective hedge do I think it's okay to use a leap. And that would be leaps against the underlying stock you already own but want to protectively capture gains by selling the underlying stock.

But not for straight out purchasing of leaps in an IRA. That's gambling. Much too risky for an IRA and most would lose on leap trades - the statistics in one of my text books shows this to be the case. Better to be on the other side - join 'em if you can't beat 'em.

Btw, I bought my car on a leap trade but that was during the boom! (and it was before I read a book on options) since then, I've wised up a tad on leaps enough to avoid them for the most part, unless it's for creating a protective hedge. Of course, the ones I dabbled in the other day were for fun (so I haven't fully learned not to use them at all.)

Regards,
Amy J
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