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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (10255)	11/2/1997 3:07:00 PM
From: Tito L. Nisperos Jr.	Read Replies (1) \| Respond to of 70976

Jacob, your alternative strategy can be added to our growing arsenal of money making schemes. You are right, the most important thing is to pick the right stock (which incidenatally is AMAT to us threaders here)---then just wait for our money to grow using the best strategy we are comfortable with. The buying on Dips, and others you mentioned are all parts of my strategy about LEAPs. I don't use margin (having been burned before) because I don't want my broker to call me for margin at a time when I have poor financial health...

To: Jacob Snyder who wrote (10255)	11/2/1997 5:43:00 PM
From: Steve Byers	Respond to of 70976

I agree with your comments about margining here rather than leaps... you have the advantage of participating in the cash market with its liquidity... rather than in the far forward market... I went thru the same thought process this morning, considering leaps of 00 at 35 which I think were around 14... then considered margining at 16.5... the one difference is I might margin long here and sell leap puts at 00... I've generated alot of cash writing puts and calls over the last couple of months and think there's little chance of amat being under 50 or 60 at a bare minimum two years from now...even 9 months from now... will talk to my broker tomorrow... if the leap puts go deep out of the money, I'd sell them to eliminate any margin and take in the cash...interesting... thats another trade for tomorrow... good luck... but agree with your thinking on the margining and came to the same conclusion myself this morning...

To: Jacob Snyder who wrote (10255)	11/3/1997 8:28:00 PM
From: David Aegis	Read Replies (3) \| Respond to of 70976

LEAPs vs. Margin: I tend to think that for taxable accounts that the use of margin is superior in low leverage situations. LEAPs are taxed 60% short term gain 40% long term gain (or is it the other way around?) while margin purchases are based on the true holding period (as long as a margin call doesn't force you to start liquidating a position at a time when the stock is low). Also, I think you have to mark your LEAPs to market and pay taxes on them every year whether or not you cash in the holding. Tax pro's please help out on this. --David