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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Gerald Walls who wrote (87864)	9/6/1999 4:09:00 PM
From: EepOpp	Respond to of 186894

>Any opinions? Gerald, since you asked...depending on how bullish you are, you could wait for INTC to keep going up and split which would give you twice as many calls. I've always wondered about buying LEAPs and if the stock moved up high enough, to sell some of the calls and use the proceeds [Other People's Money or Money Made from the Market] to pay for calling in the remainder. That way, you would have added some more shares at cost of the original call purchase. But since i've never done this, i don't know the pluses and minuses of this strategy except of course, you need to be REALLY bullish. good luck in whatever you want to do. EepOpp

To: Gerald Walls who wrote (87864)	9/6/1999 4:25:00 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Gerald - Re: 'I have some ZNLAL's (INTC Jan 2001 60 Calls) that I bought back on 6/4 at 11-3/8 that have basically gone straight up (36-3/8 bid on Friday). I originally bought these as a longer term investment but with their performance I'm thinking that it may be smarter to take profits and buy a different series later. There's no way that INTC can keep up the recent ballistic performance for much longer. Any opinions?" It never hurts to take a profit - if you feel like doing it - go for it. You can always buy a leap/call at a higher strike price for a lower price, keeping most of your profits while maintaining an interest in Intel's potentially increasing stock price. Paul

To: Gerald Walls who wrote (87864)	9/6/1999 4:26:00 PM
From: t2	Respond to of 186894

Gerald, Intel 2001 calls-strike 60 are basically just like shares which are bought on margin. Another strategy you could use is sell these calls and buy a much smaller dollar amount of more speculative short term options(January2000). If these were to expire worthless, most of your profit would remain intact from the sale of leaps. However, if Intel continues to keep shooting up like an internet stock, your cheap options would result in a pretty good payoff as well. Just an idea. (Implied volatility on Intel options should not be very high---i have not checked)