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Technology Stocks : INTEL TRADER

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To: Chris who wrote (2422)4/17/1998 11:16:00 PM
From: Hawk   of 11051
 
Hi Chris

CPQ

Jan 35's VKPAG's when the stock was 68
Sorry, I don't understand the numbers. By this to you mean you bought CPQ 70(presplit)?


Sorry, I didn't clarify, yes 68 pre-split or 34 now.

Are you still trading LEAPS? How has this experience changed your trades? I think you still lose big no matter how deep in the money you are. I'm still not sure if one is really better than the other, or if it's just the total exposure that counts. I guess total exposure has the biggest impact.

Yes I'am. Lets put it this way it comes down to timing either way the stock or the LEAPS. I prefer leaps further out say the 00's or
soon the 01's. If you make a timing mistake that gives plenty of time
for the stock and your leaps to recover. That was another mistake I made, I bought the 99's and that put me on a short time constraint.
The advantages of deep in the money LEAPS as I see it lets you
ride a stock for a lot less investment and will usually move in tandem
with stock. The risk is the time factor, but there is usually little premium and it deteriorates very slowly. But as either with a stock or a LEAP timing is everything. Because you make a smaller investment a smaller move in the underlying stock will generate a greater return on your LEAP than if you were holding the stock. This way you can hold them for a shorter period of time.

I would be interested in hearing how 'the dudes' diversify their portfolios. My myopic tech. focus may haunt me in a meltdown even with international exposure.

I've trying to learn the same thing. I seem to concentrate on just techs and miss other great opportunities. This market has gone
steadily up, while with the exception of a few techs, the techs
have not done that great.

Regards

H.
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