zsteve: re: do you still hold those leaps ?
Yes, 200 contracts. I did what I'd planned to do since last April: buy in increments when the stock got in my undervalued range, under 26. I had intended to keep on buying, 100 contracts/month, for as long as the stock stayed below 26, which I thought might be well into 1999. I was (and still am) very surprised at how little time the stock spent below 26. In the interests of honesty, I should admit to also holding a lot of nvls puts as well. I'm very glad I bought puts, rather than shorting. The leaps can go up forever in value, while the puts can't get any more worthless. I'll sell them (the puts) soon, to offset some of 1998's short-term cap gains. The leaps I'll hold till sometime in 2000, and then decide whether to convert to stock or sell them. One unintentional benefit of leaps (vs. margin, as a leverage tool), is that the spread makes it easier for me to maintain my discipline, and hold, when I get scared. It's sort of like buying a mutual fund with a huge front-end (and back-end) load. The leaps are up by about 3 times the amount I spent on puts, so I'm happy.
OT: Odd timing on the bombing, don't you think? If this story was a soap opera, no one would believe it, it defies credibility. We live in strange times. That guy will do or say anything. |
