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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: Linda Kaplan who wrote (3803)	7/6/1998 4:49:00 PM
From: Joseph E. Caiazzo	Read Replies (1) \| Respond to of 6565

Linda: Actually, I won't know if I'd trade them until I see the premium. I also don't know if there will be a liquid market for LEAPS that are well above the stock price. Nonetheless, they interest me because some carry a strike price well above the current stock price and these should support a large premium because of the long time horizon. This difference between current stock price combined with the premium almost guarantees a profit if the investor purchases the underlying security. Even if the stock is called away, the profit could be substantial. The only risk is if the stock falls well below the purchase price...then the losses incurred on the stock depreciation might offset the premium paid for the option. The cautious investor would be looking to limit this risk by purchasing the appropriate Puts at an opportune time. Good trading JEC