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To: Uncle Frank who wrote (55306)12/20/1999 10:56:00 PM
From: PLeaps  Read Replies (5) | Respond to of 152472
 
One more thing about Leaps and Options. No matter how far in the money they are, the options are not marginable. So if you had 50,000 to invest, you could buy 100,000 worth of the common stock using margin if you were so inclined. If you went with leaps or options you could only buy up to 50,000 worth.

Fortunately, I am sitting with deep ITM (in the money) options and would love to be able to margin them and buy more options or the common but cannot. Anyone have any ideas as to how to leverage further ?



To: Uncle Frank who wrote (55306)12/21/1999 12:06:00 AM
From: Jill  Read Replies (3) | Respond to of 152472
 
Thanx Farf & Frank (a new comedy team? :-)

Farf, you really put it clearly for me. Frank, your point about the 380s explained a lot.

I went back to Roth tonight to look at his point about moderately OTM leaps. But as we've noted, we don't have them here. I guess we'll get them post split. So once again I have to ask myself, is now or a few weeks from now?

You have me leaning toward now, yet Voltaire is clearly waiting, and Ibexx would wait until a dip

Anybody else want to weigh in? It's an interesting discussion, and I myself have not purchased ITM leaps previously
Jill