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To: Cary Salsberg who wrote (5691)	5/30/2003 8:27:20 PM
From: Nancy	Read Replies (1) \| Respond to of 13403

i read sam's post - his expectations analysis is based on cary's expectation of $60 by jan '05 - there is no difference than cary's buy and hold in essence - the only difference is sam uses leverage, and creates a "synthetic long". in fact, the position is even more bullish than cary's buy and hold - as if situation does not evolve the way cary/sam expect, sam would be totally out of the call prem, plus risks being put the shares at 25 with the put prem to offset it. during the near term, sam has little chance to write cover call on his leap call if he chooses 35 strike, as he probably doesn't want to write call that is below 35 against his leap call.

To: Cary Salsberg who wrote (5691)	5/30/2003 8:56:09 PM
From: Sam Citron	Read Replies (1) \| Respond to of 13403

I am not certain It is somewhat unusual to hear you express such humility, Cary. <g> In all sincerity, I appreciate the honesty. Why not go down that decision tree with expected probabilities and see where it takes you? I can see that if XLNX goes out the third friday in Jan '05 at a price less than about $37, a LTB&H strategy will yield a higher ROI than the option spread. Add in the LT cap gain advantage of the stock and the crossover point might rise to $40 or so. But that's a far cry from $60. At $60, it's a slam dunk in favor of the option spread, and you should regret your tortise-like reluctance to experiment with the unfamiliar. Nobody is ever certain of anything in this game, especially when the issue of timing is present, but... As for complexity and research costs, additional analysis would be required if, for example, one were to buy XLNX and sell ALTR. But this is much simpler. I would argue that by reducing the downside risk and the direct cash outlay, it is much easier to execute the strategy to fruition in a year and a half without being psyched out of the position by unforeseen intermediate events. But that is probably not a concern for you as it is for me. Can you please explain why you consider XLNX to be a "special situation". Sam