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To: Jean M. Gauthier who wrote (5484)3/24/2000 1:00:00 PM
From: Richard Shea  Respond to of 8096
 
>Don't you pay a lot of taxes with that strategy, instead of just exercising those DITM LEAPS ?
>
>You would use margin, but you would ACCUMULATE buying power with all that exercised common...
>
>Anyone ?

I think in a normal account taxes would be a major consideration, but I have done this in my IRA accounts primarily (in which case neither taxes nor margin apply).

The other approach I mentioned, rolling up shorter-term calls is something I do on the side with 10% of my portfolio.

Richard.