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Robert, I would have just bought the l998 calls. Although the l999 calls do not cost that much more relatively to the l998s, it's just that much more premium being paid. If the markets continue to go straight up for the next two years and we are not in any bear market, then your 1999 Leaps will have been the right thing to buy. But, despite what many people on this bb and elsewhere think, bear markets will still happen and we are due for one. When? I don't know anything about these for sure but I just know that it will come eventually. Now, if we do get that bear market between now and the expiration of your 1999 130s, then it's debatable whether anything bought at this time will be worth anything by the end. It all depends on when it starts and for how long. I sometimes wonder if there is anybody on this BB as old as I am who remembers the two year bear markets that we used to have. Now, if it is your intent to play these Leaps just "through the year" and then take profits, then the 1998s would have been good enough and cost you less money to get them. But, if you really meant that you would hold them as long as they were profitable, well that will be okay as long as we don't get any bear market. In that case, if we should, like I pointed out everything will fall including Intel. And, don't let anybody tell you that Intel won't fall or fall as much. If people look back on all the bear markets just from 1987, they will find that Intel fell plenty during those times. Again, in the final analysis, it all comes down to timing and when are you going to move out of those leaps. At what point will you have achieved your objectives? At what point are you willing to sell them when they are going against you? These are questions and there are more questions that you should be asking yourself about this situation before you go into any position. I hope that this helps you. Good trading. Jack |
