Sir Arthur: Re: Try about 15 annual sacrifices. It only hurts for a
day---maybe three.>>
The pills I am now taking would not be strong enough
to handle that.(G)
<<< Could you imagine a portfolio of just calls and leaps, for a
beginning but long term younger investor? >>>>
That depends on whether you expect the person to learn
the investment process, or to pick the investments for him.
My suggestion yesterday to brand new investor with $3000 to spend, was to set up an account, buy 50 shares of Dell to get a feel for it, and to buy one Aug 40 call to watch how it performs.
However, if I was to continue to make the selections for the portfolio, I would definitely include the 2001 Leaps. But handling Calls requires much more attention - when to buy or sell,
which you may know but the newcomer will have to learn.
An example of a Leap:
LMFAH Msft 2000 140 Cost $700 in June 1998, now is 2 LMFAN=$6050
Msft stock in june 1998=$100, now is $184 equivalent
Profit on Leap= 760% (and can be long term gain or just roll it)
Profit on stock= 84%
A second example:
ZLUAR Qcom 2001 90 Cost $1950 on Mar 18 th, now $7288
Qcom stock on Mar18=$82, now is $145
Profit on Leap= ~267%
Profit on stock= 77%
Summary:
Am all in favor of Leaps.... calls can do even better but need TLC , luck, and more attention
Regards
Sig
|
