Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Poet who wrote (325)	5/16/2000 12:11:00 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 10876

>> Now that the 2001 LEAPs are acting like short term options, are you thinking of taking profits or riding them to expiry? Roth advises liquidating at this point as extrinsic value will begin declining at an accelerated rate, but since these LEAPS are DIM, there is very little time premium left. I'm bullish on QCOM over the next 6 months, so I'm going to maintain this position, and expect the underlying to approach the 1999 ending level by 4Q00. As a side note, these options are held in my sheltered account, so I've been able to roll them up without tax consequences. I established the position last August as 160 strike price LEAPS, and rolled them into a larger number of 320s in November. The bid price on aafap's is 39 7/8 and my cost basis is 4 1/2. It just illustrates the leverage of LEAPS coupled with the power of LTB&H. uf