Digital Equipment Corp. (DEC) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Digital Equipment Corp. (DEC)

DEC 14.44

-0.2%

Dec 24 12:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: sstockss who wrote (2956)	2/16/1998 11:15:00 PM
From: Big Lou	Read Replies (2) of 3276

sstockss- For every 17 1/2 dollars I can purchase a share of cpq, with the other 17 1/2 dollars going on margin, for a total of 35 a share. So you are not realizing double the leverage as you claim on this particular option strike price ($16). Rather, you purchase 1 contract ( = 100 shares, but lets say 1 share for simplicity sake) for 17 1/2 - 16 =1 1/2 less than buying the stock (fully margined). That is not alot of leverage at all. But your way would indeed be a better purchase due to savings realized from paying no margin interest from now to Jan 2000. I'm thinking of switching my 2000 shares (fully margined) over to LEAPs myself to cut out that pesky margin interest. Does anybody know what the "up delta" is for this leap? Where do I find this out? If its close to 1, then the LEAPs may definitely be the way to go to maintain the same # of shares (thru options) without the margin interest. Just my thoughts. Lou

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next