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

To: Wyätt Gwyön who wrote (5622)	8/30/1999 2:40:00 PM
From: Apollo	Read Replies (1) \| Respond to of 54805

Thanx Greg for your take on LEAPS. Have to admit that the whole Leaps, calls, puts, options stuff is for major leaguers; I'm still in Double AA trying to learn to catch, hit & run. And do my day job. Uncle Frank/LindyBill rightly point out that Rambus has an element of risk. My conservative estimate, at a minimum, is about a 5 bagger in exchange for the risk. So 50% profits per annum from LEAPS would be below my expectations. Best to you, Stan

To: Wyätt Gwyön who wrote (5622)	8/30/1999 3:51:00 PM
From: Ruffian	Respond to of 54805

Andy Grove On Rambus> Posted 30/08/99 2:08am by Mike Magee Intel's Grove admits Rambus will take time In an interview on CNN TV last Friday, Intel's chairman Andy Grove, acknowledged that it will be some time before Direct Rambus technology becomes part of the PC mainstream. Speaking in an interactive debate using telephones and email, Grove also forecast a continuing shrinking of silicon technology but using aluminium, rather than copper interconnects. This coming week, at the Intel Developer Forum (IDF), which we will cover in full, the chip giant is expected to formally announce its plans to integrate the competing PC-133 memory technology into chipsets to integrate with its processors. At the same IDF this time last year, Intel confidently predicted that Direct Rambus modules would already be incorporated in PCs. But a combination of difficulties throughout this year has forced Intel to modify its plans in order to use PC-133 memory. Some of those difficulties are technical and others are due to the high cost of Direct Rambus modules. On the CNN telecast, Grove said that future processor speeds would demand a memory speed which could keep up. But he acknowledged, that could be some time ahead. Grove also said that it would compete with other chip manufacturers, such as AMD, by targeting them in their own space. This is not such a subtle hint that Intel's plans for Willamette may be further ahead than at first thought.

To: Wyätt Gwyön who wrote (5622)	8/30/1999 5:41:00 PM
From: edamo	Read Replies (1) \| Respond to of 54805

g.moore re: "rmbs leaps stacked toward the house" of course, not just rmbs, but any call purchased affords the writer a "win"...can never lose selling covered calls. you feel a rmbs 02100 is pricey...it is, because you are not looking at it as a stock replacement, more of a speculation. 02100@50...in the money at 150(100+50)...why not pay a higher prem for a 0250?? 0250@69...in the money at 119(50+69)...if you believe in the underlying, then it will begin to move par with the common...never use margin...buy at .70 to the dollar. to lessen your cash output and if you believe rmbs at or above 110 by 2002, sell 02110 put for a 43 prem...combination call buy and put sale very bullish...net out of pocket 26 (69-43)....rmbs up call up, put down, no cap on earnings, no worry about losing stock...if put your cost would be reduced by the prem....but you should only use options as an investment enhancement if you firmly believe in upward bias....good luck..ed a. p.s....strategy applies to any issue..prudent to buy ditm calls as stock replacement...less risk, more intrinsic value...should you catch a good one and the stock runs and splits, possible to sell one contract and use proceeds to exercise/buy common=just about free stock...

To: Wyätt Gwyön who wrote (5622)	8/31/1999 12:37:00 AM
From: The Reaper	Read Replies (1) \| Respond to of 54805

G. Man-- Follow me on this one.. Buy 1000 RMBS @100 on 60% margin. Cash needed = $60K margin debt = $40K margin cost for 2 1/4 yrs. = $8K Sell 10 RMBS JAN 2002 100 LEAPS @50 Cash received = $50K Take that $50K out of account so actual cash outlay is $10K. By JAN 2002 stock is at 100 or above.. stock is called away you receive $100K for sale of 1000 RMBS, pay broker $40K plus $8K interest for total proceeds of $52K. So..... $10K ------> $52K in 2 1/4 yrs. Just a bit more than your example of 50%/yr. if done with all cash. Breakeven is RMBS at $58/share in JAN 2002. Do this transaction at 4 or 5 different brokers and you're talking some serious coin for your money with the stock going nowhere. Think it'll work? kirby

To: Wyätt Gwyön who wrote (5622)	9/11/1999 1:16:00 AM
From: StockHawk	Read Replies (6) \| Respond to of 54805

Options play on RMBS - For a bit of weekend entertainment, consider this: RMBS closed today at about $92, so you could buy 100 shares for $9200. Lets compare buying 100 shares with an options play where you also buy 100 shares but in addition sell one call and one put. After you buy the 100 shares you could sell a Jan 02 covered call with a $90 strike price. That call could be sold for $43 which would bring in $4300. You could also sell a Jan 02 naked put with a $110 strike price, currently priced at $45. That would generate $4500 cash. After buying the stock for $9200 and taking in $4300 and $4500 your net cash outlay would be $400. In the best case scenario RMBS would be trading for more than $110 per share in Jan 02 (that represents a 20% increase over today's price). In that case the put would just expire and your 100 shares would be called away and you would receive $90 per share or $9000. Thus generating a $9000 return on a $400 investment in two and a third years. (If you had just bought the stock think about how much it would have to increase to get this kind of percentage return?) Alternatively, if the share price of RMBS does not appreciate over the next two years and the stock is selling for $90 in Jan 02 then the call would just expire but a second 100 shares of RMBS would be put to you at $110. You would have to shell out $11,000 to buy that 100 shares, thus giving you a total of 200 shares which you could then immediately sell for $18,000 (200 x $90). In this case the $400 you invested would have grown to $7000 (18,000 - 11,000) even though the stock went no where. (If you had just bought the stock you would have no profit here - actually a small loss: the share price went from $92 to $90.) With this play you can make money even if the price of RMBS declines. The only way you can lose is if RMBS is trading below $57. If it is trading at $57 you will still have to buy the second 100 shares at $110 which again is $11,000 and then you would sell your 200 shares at $57 per share and take in $11,400 just covering your costs. (If you had just bought the stock you would be looking at a $3500 loss here.) StockHawk PS. While several people did express interest in seeing options discussed here, I know several other people said they did not wish to see posts discussing options on this thread. I therefore saved this for the weekend and put "options" as the first word in the post so that it could be easily skipped by anyone not interested. I trust no one will be offended by this.