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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: im a survivor who wrote (4233)	9/28/2000 12:32:46 PM
From: hroark2000	Read Replies (1) \| Respond to of 65232

KG, I have been following a plan fairly similar to yours, except I have been going with Leaps because I like the additional time they afford. I know what you are talking about with Leaps actually increasing your margin percentage. My equity decreased as I made the conversion, but the stocks I owned like QCOM have already fallen so much that I don't think there is much downside left so I am not that worried about a margin call. The other thing I did was buy some shorter term calls (ie. EXTR) and I have been taking profits rather than going for the homerun and have let those profits go to pay off some margin debt. I think the important thing is to look at your stocks that generate buying power and then see how much of a drop you could absorb before a margin call. If QCOM or SSTI generate a large percentage of your buying power they probably do not have much downside left so you could be more aggressive in your Leap or option conversion. Good luck and getting off margin, if all goes as planned by year end I will be margin free. HR2K

To: im a survivor who wrote (4233)	9/28/2000 4:10:48 PM
From: freeus	Respond to of 65232

OK Keith, I see what you are doing. I have two accounts: an IRA and a margin account. My margin account does have mostly stock in it, which of course are marginable: I have some leaps in there but not many. I do have about 30% margin debt. The IRA has most of the options because I'm not allowed to margin in that account anyway. Thus I go for the LEAPS mostly because although they are expensive, they arent as expensive as the stock and I keep them almost as long as I keep the stock, since (except for Csco) I haven't kept anything over a couple of years so far (well except for my first buys of years ago, Coca Cola). I probably won't keep the leaps until they are nearly up....probably will sell when they have good gains. I might even sell '02's in Nov and Dec of this year: they still have a lot of the time premium and a gain is a gain. Your options sound like they'll be profitable: you should do fine selling them during late November, early Dec ramp ups. Good luck!!!!! Don't sell any more of your sunw! To me that's becoming a long term hold. Freeus