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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: BGR who wrote (91601)	1/27/1999 1:46:00 AM
From: JBird77777	Read Replies (1) \| Respond to of 176387

RE: Leverage of Leaps vs. Margin If there are no further transactions, you are substantially correct. As I indicated, the leverage factors are the initial factors. If Dell appreciates rapidly, e.g., at 40% per year, the Leaps leverage gradually increases over time, as a percentage of the initial investment. If, alternatively, the investor uses margin and chooses to maintain the margin ratio, e.g., 1.25 to 1, by periodically increasing his margin purchases to match the rate of appreciation of the Dell stock, then his January 2001 gain would be substantially the same (actually, somewhat greater) if he chooses to leverage through the use of margin rather than through the use of Leaps. JB