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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (4031)	7/19/1999 7:56:00 PM
From: Will Hou	Read Replies (1) \| Respond to of 54805

Greg (re LEAPS), I guess I am not as strong mentally as I thought I was (hence I was the only one who took your delta bait! LOL). Kiddings aside, delta should be less than 1, although it could approach 1 very very close. To me, it's basically a risk and return issue. Imagine QCOM at 150, your in-the-money 01 100C should have a higher delta than 01 140C, since 140C costs less. The only time delta will be one, is your LEAPS call is WAY deep in the money, say 01 10C or 1C, but unfortunately they don't sell those :) The best way to check out the mathematical value is to get into B&S model (just a simple equation on the surface, but they did win Nobel prize for that equation). Just my thoughts and hope they are not totally wrong. Will P.S. Thanks for those comments on QCOM/CDMA etc from other posters.