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Politics : Formerly About Applied Materials
AMAT 256.89-1.2%Dec 31 3:59 PM EST

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To: David Aegis who wrote (10322)11/3/1997 10:05:00 PM
From: Tito L. Nisperos Jr.  Read Replies (2) of 70976
 
David, LEAPs are taxed depending upon the holding period, just like stocks or any other investment...Stocks plus margin appreciates more than LEAPs during the early rise, but later on the LEAPs, as they go Deep in the money, gain more as the underlying security advances 10, 20, 30 dollars and more; that is in LEAPs, one controls more shares than if he just have the stocks plus margin...In leaps, one doesn't pay interest for margin, and the most important of all is---no one is going to ask someone who suddenly becomes "paper-poor" for additional money in times of need. Leaps are liquidated and rolled-over at will; but are not as liquid as stocks...In LEAPs one has to have a schedule to follow:--- when to take some profit and when to roll-over so as not to be caught holding the soon to be empty bag...
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