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To: imdchamps who wrote (34292)	11/3/2000 10:15:21 AM
From: DownSouth	Respond to of 54805

champ, UF is a LEAPS Substitution Therapy fan, or was. You say buying ITM LEAPS seems conservative. It is only if the stock price doesn't fall dramatically, i.e. QCOM. UF and I can teach you a thing or two about LEAPS after this year! Yuk!

To: imdchamps who wrote (34292)	11/3/2000 1:52:20 PM
From: Uncle Frank	Read Replies (1) \| Respond to of 54805

I have used LEAPS substitution therapy on several occasions, with mixed results. The problem arises when the underlying crashes, a la Q. In an ugly situation such as that, the LEAPS lose a much higher percentage of their value than the stock - negative leverage. And even if the stock rises, LEAPS are not long term instruments so you will need to sell or exercise them in 12 - 18 months. Bottom line, if you can handle the volatility of LEAPS, they represent the best method I know of to increase leverage while avoiding the perils of margin. uf