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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Henry D who wrote (28961)	3/8/1999 3:25:00 PM
From: MrGreenJeans	Respond to of 70976

Short-Term Options on Leaps? have you ever heard of buying a short term option on a LEAP??? this would seem to provide immense leverage on a short investment. There are short-term options of up to 9 months and there are leaps of up to 2.5 years. Just what are short-term options on Leaps? Curious.

To: Henry D who wrote (28961)	3/8/1999 3:46:00 PM
From: Tito L. Nisperos Jr.	Read Replies (2) \| Respond to of 70976

Henry D, I don't quite understand what you mean by "... a short term option on a LEAP... " You see, the 2002 LEAP that will have a "life" of about 2 years and 8 months until it expires in Jan 2002 (I'm not sure about the exact date of availability in Spring) will replace the Jan 2000 LEAP (which will in turn become Short Term Option and renamed as such)... ... Maybe what you are asking is what Options give you more leverage than LEAPs. Well, they're the regular Options, like the Mar, Apr, Jul, Oct, etc --- Short Term Options that are cheaper than LEAPS and thus give you more number of Calls (or Puts) for your Bucks.

To: Henry D who wrote (28961)	3/8/1999 5:16:00 PM
From: William	Read Replies (1) \| Respond to of 70976

<<have you ever heard of buying a short term option on a LEAP??? this would seem to provide immense leverage on a short investment. >> A leap is an option. It is a long term option. You are asking about buying an option on an option. The answer is no, there is no such thing. Is this something that 1) you thought up or 2) something you heard/read about? You should obtain and read the CBOE booklet on understanding options. This will be sent to you by any broker that you request to open an account that is allowed to trade options. You may also obtain a copy from the CBOE. This link may be of interest to you. cboe.com You may have a copy of the booklet around. If so, read it. Happy investing. William