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To: SecularBull who wrote (3721)7/20/2000 11:19:36 PM
From: DownSouth  Read Replies (1) | Respond to of 10934
 
Here's what Roth says (P. 49):

"For a modest move, an ITM or ATM LEAPS Call is probably best for you. It is when you are looking for a larger move that we can suggest viewing the OTM choices...

"The thing that the strategy of buying LEAPS Calls has a divergence from the conventional. That essential distinction is that you need not fear moderately OTM LEAPS..."

"And you can do it without the usual risk attendant in such a procedure. That is becasue the method (OTMs) often fails with options even when the stock rises. It fails beause there is not enough time for the stock to rise sufficiently to produce profitablility...

"The bottom line is that you should both consider your expectation and look at the LEAPS panolpy with a rish-oriented viewpoint. But within that framework our assessment is that OTM LEAPS Calls can be appropriate selections."