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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Casaubon who wrote (71084)	6/5/2005 10:34:56 AM
From: Tech Master	Respond to of 94695

XPOs will give you the opportunity to purchase the underlying asset for a fraction (probably about 1/2) of the cost, less the voting rights and dividends. Empirical data from perpetual warrants from the 40s and 50's showed that about 50% of the underlying stock price was the optimum price for those warrants. I'd humbly suggest that the same will apply here... somehwere around 50-58% percent of the underlying stock price. During my research on XPOs, I reviewed the three patents that have been awarded on the product. They are very broad and appear to be groundbreaking for financial products. XPOs will change the way the market manages risk or looks at options. XPOs give you the benefits of options (strike price selectability, additional leverage) without the risk of time decay. Once they are introduced, I'll never buy a stock that I plan to buy and hold that has an XPO as an alternative. I'll buy twice as many XPO contracts on it instead. I understand why they'll launch an index first, but PLEASE bring on the equity XPOs ASAP!!!!!