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

To: SecularBull who wrote (1681)	1/25/2000 2:52:00 PM
From: RR	Respond to of 8096

I also now consider LEAPS as a LTB&H position. RR

To: SecularBull who wrote (1681)	1/25/2000 2:57:00 PM
From: Poet	Read Replies (2) \| Respond to of 8096

LoF, I've watched the "discussion" over there and honestly don't know why LEAPs are not considered LTB&H by the G&K. Perhaps it's because Geoff Moore says so in one of his books. Perhaps it's considered "PC" on that thread to say so. It makes no sense to me. Making money on strong companies with the aid of options is OK in our books here, LoF. That's really all I have to say. In public, anyway. :) Long on Poetry

To: SecularBull who wrote (1681)	1/25/2000 2:58:00 PM
From: the options strategist	Read Replies (1) \| Respond to of 8096

LoF, it probably has to do with their interpretation of buy and hold and understanding of LEAPS. I agree that LEAPS are a great long term investment but they may be thinking that because there is an expiration date down the road it does not qualify for b/h. Just an assumption. jj

To: SecularBull who wrote (1681)	1/25/2000 10:55:00 PM
From: Original Mad Dog	Respond to of 8096

They are quibbling about semantics. If the word "long" means longer than your LEAP period, I suppose they are right, although if you exercise you are basically in the stock anyway. If "long" means anything longer than next month's expiration, I suppose that LEAPS qualify as a LTB&H strategy even if you don't exercise. Under a traditional definition they do not qualify because under LTB&H, an extended bear market (remember those?) is ok because you are in a strong company and eventually it will rise above the muck, whereas on a LEAP you can't wait forever and eventually it will become a loss upon expiration. Not to mention that part of the strategy is tax and sometimes estate planning driven, which LEAPS will not help you much with. Since everyone involved in the argument probably understands the underlying concepts anyway, why argue over what to call it? MAD DOG