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

To: Cactus Jack who wrote (56508)	12/24/2002 9:40:06 AM
From: RR	Read Replies (2) \| Respond to of 65232

Morning Cactus! Merry Christmas! Answers to your questions follow. Only problem with the LEAPs is you miss out on the dividend. Ture, but I use a combination of strategies. I own rather large positions in the underlying, so I do get the benefits of the dividend. Especially on the slow moving laggards, the "turtles," my view is long term hold and dollar cost average. Capital appreciation. Limited risk versus the high fliers. Take a nap with them. I will sell covered calls against them at times. 1. Dividends 2. Captial appreciation 3. Sell cc's You still prefer LEAPs to common? Not necessarily, although I do still play options aggressively. I want the leverage. Some of the leaps I mentioned last night are dirt cheap in my view. One of those 05's has been priced lately such that the underlying only has been to move about 1% to break even. That's two years away, and on a solid turtle, too. Not bad. I'll assume some of that risk for added leverage. RR