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


To: Walter C. who wrote (267)3/4/1998 10:35:00 AM
From: John Lacelle  Respond to of 315
 
Walter,

The decision to create "LEAPS" is based on the idea that there
is a lot of risk in such a long term option. The trading boards
that carry regular stock options know that 90% of the contracts
expire worthless which keeps the risk factor low for the trading
boards. This is why LEAPS are created for companies that have
large caps and low beta. It keeps the potential risk for the
trading houses on the low side.

-John