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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Todd Reichardt who wrote (1084)	12/31/1997 11:19:00 PM
From: Walter High	Read Replies (1) \| Respond to of 164685

Todd: Look at it this way. Suppose you really believe in the stock, but you can't sleep at night with option contracts that could go bust and lose all your money in a few days. You have $12,000 to spend so you could buy 200 shares of the stock at 60. If you instead buy the option at a strike price of 40, you will pay $20 a share for it and your $12,000 can control 600 shares. The volatility is three times as great since the stock price and option price will probably move almost in tandem at that great a distance. But if you believe in the stock and don't want to do REAL options<ggg> this is one way to increase your leverage without going on margin. Walter High