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To: rudedog who wrote (37107)	4/8/1998 2:27:00 PM
From: SecularBull	Read Replies (1) \| Respond to of 176387

But aren't LEAPS a way to do the same thing with less money down?(although I guess LEAPS begin to cost a lot relative to equity when you consider there is no underlying value to options).

To: rudedog who wrote (37107)	4/8/1998 2:33:00 PM
From: K. M. Strickler	Respond to of 176387

r, Ah, YES! Looks like the management can do more that just run the company. The sale at the lower price and reinvestment for the rise to get the Long Term tax advantage is an excellent move! IMHO regards, Ken

To: rudedog who wrote (37107)	4/8/1998 7:24:00 PM
From: Geoff Nunn	Read Replies (2) \| Respond to of 176387

Rudedog, I don't believe that is correct. When an employee is granted an option, the fair market value is taxable as ordinary income. This applies whether you sell the option or not. Assuming you decide to hold it, any subsequent rise in value is taxable at capital gains rates. Therefore I see no tax incentive to replacing the option with shares of stock. I may be wrong but I doubt it. <g>