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Technology Stocks : IBM -- Ignore unavailable to you. Want to Upgrade?

To: WebDrone who wrote (4666)	2/6/1999 1:40:00 AM
From: Marty	Respond to of 8218

Since you asked, I now have the Jan00 130s (LIBAF), the Jan00 160s (LIBAL) and the Jan00 170s (LIBAN). I bought them at different times. Almost all of them I have traded up to. In other words, I may have started with a couple of 120s and, as it happened, they doubled so I bought some 150s farther out in time and either put the difference in my pocket or bought an extra couple of them with the profits in the next series. I like to buy them well in the money and far out in time. First of all, you get the best value for your money when you put up more money and second you don't have to sweat out expirations for a long time. Basically, the bet, at the prices today, is that IBM is going to be over prox 178, 190, and 195 in my 3 series of leaps sometime before January, 2000. My bet was even better when I bought the LEAPs. The term "best value" is one I made up based on my formula of what the returns would be for selling calls... my more typical trades. I figure out the annual net percentage return if the stock is called away and if the call just expires. The better it is, the better the option is to sell (with a lot of other value and industry criteria I use). The lower it is the more I think the premium is low enough to buy the call instead of selling it. On the whole, I think IBM LEAPs are cheap. Of course, that is because I made lots of money with them. Everything works though when you are swimming with the current. Good luck with it.