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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Jean M. Gauthier who wrote (26534)	7/18/1999 2:40:00 PM
From: Gerald Walls	Read Replies (1) \| Respond to of 74651

That was me, saying that my 2001 95's LEAPS I bought after the split, were bought at $ 23/each (when the stock was about 93.5) and only now, with the stock at ! 99, has the value of my leap gone over $ 23. Stock appreciated $ 6, (from 93.5 to 99.5) My LEAP appreciated not at all (from $ 23 to 23.67 friday) Well, when I bought my 75's the stock closed at about 71-1/8 split adjusted, so the stock's moved nearly 29 points in my favor and my options only moved about 17 points. That's how they work. The deeper into the money they get the greater the delta and the faster they'll move. Your options are still just barely in the money so they'll move slower, up and down. Since your experience was over a substantial period of time the performance of your options reflects both the erosion of time premium and the low delta of an (until friday) out-of-the-money option.