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Technology Stocks : Intel Strategy for Achieving Wealth and Off Topic -- Ignore unavailable to you. Want to Upgrade?

To: David S. who wrote (14962)	12/22/1997 10:33:00 PM
From: ANANT	Read Replies (1) \| Respond to of 27012

david and humble carl: Buying Leaps I thank for your reply and I am in general agreement with you. Buying "out of the money" leaps is a risky strategy in a down market from my own experience. Again the terms "out-of-the money", " at-the-money", "in-the-money", and "deep-in-the-money" etc. are relative. In a sliding down market, it does not take much for a "deep-in-the-money" leap to become "out-of-the-money" leap. None of us know the bottom of INTC. Unless you buy a real deep-in-the-money leap with probably a strike price of 30 - 50, you are not safe. It appears to be an art to figure out the right strike price. I still do not know how to determine the optimum strike price. I hold INTC, INTCW (with low cost basis) long term as core. I do not intend to sell. I am very heavily weighted with Intel. I share completely with the views of humble carl in this regard. I hope we both are right. In my case, these are intended for transfer to the next generation. I do not know if I am right or wrong. Only time will tell. Here I might differ with humble carl. In a small portion of the money from other sources as a part of speculation , I like to buy leaps of good companies could be INTC or GE, KO, PG or REITs etc when the stocks are down. Any transactions I do with leaps is purely short term play. Any gains I get, I like to use them for converting them into stocks. In addition I invest in DRIPS ( without concern with DIPs [ pun to the credit of soki] in the market). Sometimes I obtain stock certificates from these companies and deposit them into my regular brokerage accounts to obtain leverage. Any comments on the philosophy will be appreciated. rgds ANANT