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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: Moose who wrote (4088)	1/10/1999 10:52:00 PM
From: FR1	Read Replies (1) \| Respond to of 29970

How 'bout some Year 2001 Leaps? Agreed. I am thinking about it for 2000. The only argument I have heard against leaps is that you are forced to cash in your option on the expiration date (assuming you do not sell it before hand). This means you have tax to deal with. In other words, if you bought stock now and rode it up, then in 2001 you would have no tax burden and the stock would be making money as it goes up. The options must be cashed in and are treated as a cash payment to you. The arguments in favor of the call options are that you get a lot of leverage (as long as you buy near the current price) and you can sleep at night assuming you have written off the purchase. Options are quite a bit more risky in a stable market. The number crunchers are real good at figuring out what to make the premium and it is hard to make money on options in a very stable market (which this is not).