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To: Srexley who wrote (6421)	4/12/2000 1:43:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 11568

You eliminate more premium as you go deeper into the money. I want to avoid paying premium in this stock. LoF

To: Srexley who wrote (6421)	4/12/2000 5:17:00 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 11568

re: am I missing anything? Here's how I do it: First, it has to be a stock that I'm sure will at least double over the life of the option. That means a quality company at a good value, and a option with at least 2 years to run. Second, I make a spreadsheet, showing the % return, at various strike prices and various possible stock prices when I sell. Then I stare at that spreadsheet for a long time, trying to find the best risk/reward ratio. I usually end up buying strike prices 50-100% above the current stock price. I've taken large positions in LEAP calls, 4 times in the last 2 years. I've sold 2 of them for spectacular gains (AMAT and INTC), still holding the other two (SAP since 3/99, BSX still buying). If my evaluation of the company or the stock is wrong, I can lose everything I invest in LEAPs. So, I have to be very sure, and think everything through from all angles. "Gut feeling" is not adequate.