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To: taxman who wrote (1192)	1/16/2000 9:16:00 PM
From: leapster	Read Replies (1) \| Respond to of 8096

TAXMAN Thank you for your reply and advice. My FIRST post and FIRST reply!! I'm enjoying this. I can see where it could become addictive! Imagine when it's all wireless! As to DIM Leaps and author Harrison Roth, he devotes Chapter 33 to the subject. He states that the DIM Leaps can be used as a "stock substitute". Seems to suggest using DIM Leaps rather than buying on margin. Very similar effect with no margin calls and no margin interest. Have the point cost of the Leap. He states that the strategy is "for those with a pronounced bullish expectation and a strong degree of risk aversion"! WOW! That's me! (and just about everyone else) He goes on to say that reports show that this is "the most popular LEAPS strategy". Must have downside advantage?

To: taxman who wrote (1192)	1/17/2000 5:23:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 8096

>> i haven't had a chance to read the roth book. does he give a reason for in the money versus out of the money? as i have stated previously, i usually buy as far out in time and as far out of the money as i can. Roth points out that DIM LEAPS have a very high delta, so they track almost 1:1 with the movement of the stock. As a result, and since they cost about 1/3 of the underlying common, they be used as a low cost stock surrogate. Another way of looking at it is DIM LEAPS provide you a leverage factor of 3 over owning the stock itself. uf