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

To: Jean M. Gauthier who wrote (5176)	8/23/1999 4:11:00 PM
From: Uncle Frank	Read Replies (2) \| Respond to of 54805

Jean, you've got a beautiful portfolio, and I'll bet you'll have great returns this year. I'd be the last person in the world to suggest that you change your allocations or your balanced investment style. LindyBill and I are insanely tolerant of volatility and incredibly greedy to be so overweighted in Q. The fact that it's worked so far is no justification for our immoderate approach. Franq

To: Jean M. Gauthier who wrote (5176)	8/23/1999 4:20:00 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 54805

Jean, re: QCOM LEAPS, I have some LEAPS expiring in 2001. My hope is that the price will be at least double the strike of 150 (i.e., share price of 300), so that I can just execute the calls using margin to cover the 150 price. That way it won't be a taxable event.

To: Jean M. Gauthier who wrote (5176)	8/23/1999 5:14:00 PM
From: Kayaker	Read Replies (1) \| Respond to of 54805

If I understand this right, for every $ OVER 160$ this stock goes, the LEAP appreciates by as much? Jean, right now the 2002 160 call LEAPS are moving up 77½ for each dollar rise in the stock. This is the "delta". At the following link, click on "Option Chain" at the bottom of the list on the left. Then select "Greeks" and list the options for QCOM. You will see a delta of .77 for these calls. (I have a couple of QCOM 2002 150s and 160s in my RRSP.) fast.quote.com

To: Jean M. Gauthier who wrote (5176)	8/23/1999 10:01:00 PM
From: Mike Buckley	Respond to of 54805

Jean, If I understand this right, for every $ OVER 160$ [the strike price] this stock goes, the LEAP appreciates by as much ? Probably not. Don't forget that when the stock gets to $161 there is only one dollar of intrinsic value. The rest is the premium. It's the premium that, in theory, falls as the contract gets closer and closer to the expiration date. That explains why you probably won't see a dollar-for-dollar appreciation of the LEAPS until it gets very far into the money and only if it happens long before the expiration date. --Mike Buckley