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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Joseph J. Clark who wrote (21679)	7/13/1998 8:35:00 PM
From: Lane	Respond to of 70976

2002 leaps begin trading in June of next year I believe. As to which are a better value, it depends on your game plan. Can get more of the 40s for the same $$ amount invested. When you sell will determine the "better value" question to some degree. At the moment, the 2001 40s are $7 3/8, while the 2001 30s are $10 3/8. So for the same dollar amount invested, lets say $25,000 as an example, you get 33 contracts of the 40s and 24 contracts of the 30s. Now lets say that the stock is at 100 and no time value left in the option premium when you want to sell. The 40s will be worth 60/contract, the 30s, 70/contract. Thus the 40s are worth 198,000 and the 30s are worth 168,000. The value will fluctuate depending on the time value left in the contracts at selling time, but it should be approximately equal as both will be significantly in the money.