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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: smolejv@gmx.net who wrote (2669)	4/27/1998 2:00:00 AM
From: Gersh Avery	Read Replies (1) \| Respond to of 11051

Yes .. I understand. When the BOJ dumped US bonds to stop the outflow of yen, the Japanese traders looked for somewhere else to transfer the liquidity to. Some of this may still come to the US. Re: is supposed to be somewhere else. Yes .. I know .. these kind of tops are easier for me to pick. Gersh

To: smolejv@gmx.net who wrote (2669)	4/27/1998 4:57:00 AM
From: Berney	Respond to of 11051

Berney on Leaps -- Part 1 As the Dudes know, I tend to analyze things to a fault. The subject of Leaps on this thread has been very interesting to me. I particular enjoy the potential leverage that they create. But, before I get into something I like to prepare a set of data for future reference. But, first a little Leaps Trivia. 1) What is the only DJIA stock that does not have a leap available. 2) Can you guess the only DJIA stock that has no open interest on either the 99 or 00 (that's 2000 for you concerned about y2k)? Answers at the bottom. I set up a spreadsheet of current leaps that are just above the current stock price of all the DJIA stocks and our beloved INTC. But, of course, I went beyond that. I wanted to see what the current effective cost percentage of the various leaps are, which is defined as ((leap strike price - current stock price) + leap option premium)/ current stock price. Algebra is a great subject. Not to discount geometry. I've been reading one of John Murphy TA books this weekend and had fun seeing if I could chart some channels. GE's weekly chart sure make for interesting observations. The point here being that I totally understand that I'm ignoring some probably important things like volatility and trends. But, it is obvious that we have an absolute supermarket of leap prices. Some leaps are very dear in price and others are on sale. Now I've got the data captured and we can see what happens. P.S. I know JT that I should have been filling out the stupid brokerage application. I got a small chuck of change just sitting in my checking account waiting for me to write the check. Maybe today. Then probably something else will distract me. JAN 99 PRICE OPEN COST SYMBOL LEAP SYMBOL 04/24/98 INT PERCENT AXP 110.00 VAXAB 9.13 1250 16.9% WMT 55.00 VWTAK 3.50 4321 16.4% HWP 80.00 VHPAP 6.75 1377 16.2% INTC 85.00 VNLAQ 9.75 13017 15.5% ALD 47.50 VADAT 3.50 72 15.3% GT 75.00 VYRAO 5.50 0 15.0% MO 40.00 VPMAH 3.63 15235 14.4% TRV 65.00 VRVAM 6.88 1847 14.3% CAT 60.00 VKTAL 5.00 85 14.2% MRK 120.00 VMKAD 12.00 1373 13.3% PG 90.00 VPGAR 6.88 1347 13.3% JNJ 75.00 VJNAO 5.00 936 13.3% GE 90.00 VGEAR 5.00 2994 13.3% S 60.00 VRSAL 5.13 1169 13.1% MCD 60.00 VMDAL 5.63 4924 12.9% IP 55.00 VNPAK 4.88 519 12.8% T 65.00 VTAM 5.25 2369 12.7% BA 52.50 VBOAX 4.63 3275 12.7% DIS 120.00 VDSAD 17.63 1225 12.7% JPM 140.00 VJPAH 12.50 178 12.4% GM 70.00 VGNAN 5.88 1646 12.4% IBM 120.00 VIBAD 11.63 5296 12.1% KO 75.00 VKOAD 7.50 579 12.1% EK 75.00 VEKAO 5.63 6180 11.7% XON 75.00 VXOAO 6.63 517 11.1% UK 50.00 VCBAJ 4.63 522 10.8% CHV 85.00 VCHAQ 6.00 412 10.4% MMM 95.00 VMUAS 6.88 183 10.4% UTX 100.00 VKUAT 8.00 75 10.1% DD 70.00 VDDAN 9.88 1066 7.2% CBOE does not indicate any higher priced leaps available. Answers: 1) you won't find AA on the list. 2) you will note the open interest on GT is zero. Enjoy! Comments Berney

To: smolejv@gmx.net who wrote (2669)	4/27/1998 5:20:00 AM
From: Berney	Read Replies (1) \| Respond to of 11051

Berney on Leaps -- Part II Presented without editorial comment. Except to say, I also did the same exercise for putting on a May put/call straddle. Just wanted to see what the results will look like. But there too, there are some interesting cost issues. JAN 00 PRICE OPEN COST SYMBOL LEAP SYMBOL 04/24/98 INT PERCENT HWP 85.00 LWPAQ 12.13 11984 30.2% TRV 70.00 LRVAN 10.00 2064 27.2% INTC 85.00 LNLAQ 17.50 3218 24.9% BA 55.00 LBOAK 8.00 2440 24.3% WMT 55.00 LWTAK 7.25 197 23.9% AXP 110.00 LAXAB 16.13 263 23.8% EK 80.00 LEKAP 8.38 467 22.4% KO 80.00 LKOAP 10.13 1728 22.4% ALD 47.50 LACAT 6.63 56 22.3% GT 75.00 LYEAO 10.13 0 21.6% CAT 60.00 LKTAL 9.00 11 21.2% MO 40.00 LMDAH 6.13 10551 21.0% S 60.00 LSAL 9.63 217 21.0% GE 90.00 LGRAR 11.38 2143 20.9% MRK 120.00 LMKAD 20.38 1033 20.5% DIS 120.00 LWDAD 26.88 855 20.3% MCD 60.00 LMCAL 9.75 1018 20.0% JNJ 75.00 LJNAO 9.75 2924 20.0% DD 80.00 LDDAP 9.25 55 19.8% PG 90.00 LPRAR 12.38 477 19.7% IBM 120.00 LIBAD 20.38 3787 19.6% T 65.00 LTAM 9.50 1186 19.6% IP 55.00 LNPAK 8.38 176 19.4% JPM 140.00 LJPAH 20.88 68 18.6% GM 70.00 LGMAN 9.75 1802 18.1% UK 50.00 LCBAJ 7.88 189 17.4% UTX 100.00 LUDAT 14.25 93 16.5% MMM 95.00 LMUAS 12.13 61 16.0% CHV 85.00 LCHAQ 10.13 713 15.4% XON 70.00 LXOAN 12.75 939 12.6% CBOE indicates no higher priced Leap available. And on this Dudes, I think I'll go to bed, so I can get up in time to see what all that Asian red ink is going to do to the price of these Leaps (and the rest of the Market). Berney