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Strategies & Market Trends : Giant LEAPs... -- Ignore unavailable to you. Want to Upgrade?

To: up3up4 who wrote (233)	11/22/1997 10:25:00 AM
From: James Connolly	Respond to of 315

Alex, Here is a LEAPS idea I heard on another thread after someone asked if there were LEAPS longer then say 2 years. It is called the 10 year LEAP idea. The idea is to buy LEAPS (say Jan 00) in quality companies e.g INTC, CSCO, AMAT etc. Then in Jan 99 sell these LEAPS and buy Jan 01 LEAPS. You then continue this process year after year for as long as you like. If the stock price is down when you sell the LEAPS then by the same token the LEAPS you buy will also be cheap. I believe with LEAPS that the time premium only starts to decay in the last 6-8 months so if you sell half way through the life of a 2 year LEAPS you should not loose any money form decay of the time factor. Regards JC.