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

To: Uncle Frank who wrote (9451)	10/24/2000 12:19:50 PM
From: mtnlady	Read Replies (1) \| Respond to of 65232

Yes I've gone to LEAPS over common as well. With my portfolio 'not what it used to be' and Tom convincing me that 'more shares locked up is better' I've gone to LEAPS versus common. I tried shorter term options at first but they kept me up at night nervous as to what the market (downturn) would bring the next day and watching the time premium getting eaten up. LEAPS seemed like a good 'in between' solution. I can lock up more shares than I could holding common stock and more time to ride out the market downturns (helps with my patience :). If we get a huge downturn sometime next year (and I'm in cash) I may revert back to common so I can get back to writing cc's against my stock. I am looking for growth over income right now though.

To: Uncle Frank who wrote (9451)	10/24/2000 1:21:25 PM
From: rx4pain	Read Replies (1) \| Respond to of 65232

Hi Uncle Frank, I've been trading LEAPS for about a year now. I definitely like the leverage, and the returns tend to be nearly twice what the underlying yields. Last year, during the year end rally, I went 6 consecutive compounded(50% gains or better) trades in an 11 week time frame-yielded me about 900% net. Now I'm playing with spreads on the LEAPS. Buying the call LEAP, letting it run a little, then selling a call. Currently have spreads open on EMC Jan '02 and INTC Jan '03. Waiting to spread my GBLX. Heh, Rx