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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: Don Miller who wrote (1916)	3/4/1999 9:38:00 PM
From: Bob Swift	Read Replies (3) \| Respond to of 10280

I would be the last person to ask for help in this area. I always remember that everyone think they are a genius when the market goes up. If you read the 1997 and 1998 posts, Peter is probably the one to ask. My technique ? You will laugh, I simply pretend the LEAP is the stock and buy it. The reason I buy with confidence is the strong story behind SEPR and I figure that the risk that it might fall on its face within the time frame of the LEAPs is low. If I had bought the stock outright I would have to pay interest on the margin and get about 2/3 the number of shares I get with buying the option. In summary, you get bigger bang for your buck but you have to be convinced that SEPR will be higher two years out - much higher than 182 if you bought ZQTAH (Jan01 140 at 41 7/8) today at its close. I do believe that SEPR will exceed that by about $ 150-180 by then. As I learn over the past couple of years, the price of an option is composed of five parts including volatility of the stock price. Right now, the price of the options are high and we are paying for the volatility. Go to the CBOE site and they have some educational materials there.