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Politics : Formerly About Applied Materials
AMAT 304.84-0.8%Jan 13 3:59 PM EST

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To: Tito L. Nisperos Jr. who wrote (11185)11/15/1997 10:32:00 PM
From: Tito L. Nisperos Jr.  Read Replies (1) of 70976
 
To All Who Want to Play LEAPs:

When I told the thread how I succesfully invested in LEAPs, I was just trying to help, especially those who found themselves with paper losses that they want to get up quick. To mislead anybody is not within my character.

But even tools can be harmful if not handled right---like a knife to peel the skin of an apple that suddenly injures the one clumsily handling it. I remember years ago when I urged a relative to buy stocks because I saw something beautiful in stocks. He did bought stocks---but not the one I recommended but a new issue that skyrocketed in price from 10 to 20 on the first day of trading; my relative bought the stock at 20 then saw the stock slid to 17 at the close. He was in trouble because he did not have the money to pay for the stocks; he just gambled that the stock will go up to 25 or 30 that same day so he could sell for a profit...

There are so many misconceptions about LEAPs. Apparently many people do not realize that LEAPs can be bought one second and a few seconds later sell it. One need not hold the LEAPs till expiration to loss money...

There's no problem with the tool, the LEAPs. The problem is with the Investor. If he has a profit to take and does not take it, he has nobody to blame but himself if he losses those easy to realized profits.

If you have doubts about the profitability of LEAPs, don't buy them; your Instincts are telling you not to. Just confine yourself to the investment strategy that works for you...
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