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To: tyc:> who wrote (19297)8/27/2006 8:26:23 PM
From: koan  Respond to of 78413
 
My next to last word on this tyke-lol.

As mentioned, if the stock goes far enough into the money the original leverage derived by simply dividing the wts cost into the cost of the stock will be realised EVERY TIME!

So if the wts are three to 1 share and the wts are $3 and the stock is $15, If K goes to $1,000 a share you will not get 2.5 times the ratio of the wts to stock you will get 5 times the ratio of wts to stock.

ergo 5 to 1 leverage!