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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: rabbit who wrote (39404)	2/16/2000 3:58:00 PM
From: Mang Cheng	Read Replies (4) \| Respond to of 45548

rabbit, you have a good point. For myself, I bought leaps instead of stock on margin (on this particular instance) is that when you bought stock and if you are fully on margin, once the stock starts dropping, you'll be in grave trouble. Look at the following scenerios: 1. Today, you only have $3,750 and you went out to buy 100 coms for $7,500. Stock drops $5 tomorrow and you'll get a nasty house call. 2. Today, you only have $3,575 and you went out and bought 1 contract of coms 2001 $45 calls for $3,575. Stock drops $5 tomorrow and you'll NOT get a nasty house call. Just my understanding. All depends on how much cash you have to buy these stuff. Margin is very high risk if you don't handle it properly eventhough it looks very innocent. Mang