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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: ed who wrote (13877)	1/6/1999 1:21:00 AM
From: Ibexx	Read Replies (1) \| Respond to of 74651

ed, Hindsight is 20/20. Options playing requires more precise timing, which adds to the risks very significantly. Options is not a game for everyone. Ibexx

To: ed who wrote (13877)	1/6/1999 7:32:00 AM
From: Jordan A. Sheridan	Respond to of 74651

Ed; Although I agree that the person you mention could have made more money through your described strategy, I really don't think this fact qualifies him\her as 'stupid'! The person in question has done absolutely nothing in the last six years(no extra effort, no trades, no worries, etc) and has turned a $9200(100 shares$92) investment into $117200(current 800 shares146.5 price at close yesterday)! That's roughly 1175% profit over a six year time frame, or approximately 195%/year(average). Again, I agree that he could have made more, but hey, if stupid means a ~200% ROI year over year, then I'd be honored to be called stupid anytime.... Regards; Jordan

To: ed who wrote (13877)	1/6/1999 9:35:00 AM
From: J. P.	Read Replies (1) \| Respond to of 74651

Ed, (RE: your leaps strategy), Good concept, however you forgot to mention a couple of factors: 1. During these moves Microsoft has had fluctuations where the holder of LEAPS will have seen his net worth oscillate wildly, like for example in October, when Microsoft dipped to 85. And this person holding the leaps would have to keep their cool during this period. Easy you say? Ah, easier said than done. Also, they would have to keep their cool and not sell too soon, and how do they determine when to roll up? 2. Taxes, Taxes, Taxes. Everytime you roll up your leaps you have to pay capital gains taxes which eats about 28% of the profits each time. I will submit that I expect Worldcom, Cisco, America Online, Dell, Lucent, Microsoft to double in the next 2 years. Go ahead and try your Leap strategy, the world is your oyster.