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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Neal davidson who wrote (498)	1/2/2000 1:15:00 PM
From: The Reaper	Read Replies (2) \| Respond to of 8096

Two things stand out to me regarding this strategy. 1) The leap spreads are around 5 pts. so I don't think that buying at the bid is doable. However, it still seems to be a pretty cheap premium to pay for these leaps. 2) Do you all remember the huge premiums that were attached to QCOM before the split? Now I understand that the stock is 1/4 the previous price but premiums are way down IMO. I've seen that when premiums are large we usually get a run in the stock as evidenced by the pre-split run. I would be a little wary of these relatively small premiums on all series of calls. If the premiums are built back into the calls on Monday, then all is well, if not...... If you are inclined to purchase ITM leaps here, writing OTM near term calls, and rolling up/out would be a way to minimize risk while still collecting premium. Disadvantages would be to generate taxable returns, and reducing gains if the stock continues to fly. But we've come a long way recently. JMTC. kirby