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To: QMS who wrote (22921)	3/22/1998 8:19:00 AM
From: Mike Gordon	Respond to of 97611

<If you are looking out that long ,which I agree.Why not load up on leaps and buy a small amount of common.> QMS: Excellent question. There are several answers most of which is dependent upon your trading style and goals. A) From a functional standpoint, the spread between the bid and ask prices is typically high due to low demand. If the spread is 3/8 to 1/2 a point, your talking $375 to $500 on a 1000 shares. Its cheaper to by the stock. B) If you are short term, the return on a short term transaction (5 weeks or less) is higher than a 6 month to 2 year return. C) Deep in the money leaps are subject to the same currents as the underlying security. Therefore, the further out you are the less control you have. (Impact of earnings, market trends, etc.) D) Short term calls and puts are easier to bail out of. My liquidity related to market price is closer due to heavy demand for the issue. Not true in LEAPS. I can't depend on the quoted price due to limited demand. Several more reasons could be listed here. My primary reason for not selling LEAPs is my trading style. I generate an income monthly. When calls and puts expire, I take money off the table and look for the next candidate. Mike