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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?


To: Mike Buckley who wrote (24706)5/14/2000 12:40:00 AM
From: Uncle Frank  Read Replies (2) | Respond to of 54805
 
>> Exactly. Gawd, how I wish I could buy ten-year LEAPS.

Qualcomm $97.5 (ATM) 2002 LEAPS closed at 38 3/4 on Friday.
They have 20 months left on them.

A 10 year LEAPS would have a lifetime 6 times longer.

The time premium multiplier between 20 month and 120 month LEAPS would be the square root of 6, or 2.45, so the LEAPS would cost

2.45 X 37.75 = $92.49

Qcom closed at $98.

You've reached the point of diminishing return, and might as well buy the stock.

uf@optionsvaluationsarefun.com