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

To: ratan lal who wrote (13208)	12/13/1997 2:57:00 PM
From: Tech Buyer	Respond to of 70976

Ratan, Each person has to know his own level of risk tolerance. Personally, given all the recent uncertainties, I would consider buying only the Jan 2000 LEAPS. The extra year is well worth the approximate extra $3 in premium, IMHO. The monthly loss in time premium for the Jan 2000 is negligible right now. In-the-money LEAPS are good as trading vehicles because they closely track the stock. The best time to buy them is when the stock is in an oversold condition. Just don't hold them too long after you've made a good profit. I would stay away when the stock is near its all-time high. They're not designed for momentum investing. Other people may prefer the Jan 1999 to increase the leverage, and that's fine too, as long they understand and accept the extra risks. You should read Tito's posts on LEAPS for more strategies. Good trading, TB