Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Philip Morris - A Stock For Wealth Or Poverty (MO) -- Ignore unavailable to you. Want to Upgrade?

To: S. M. SAIFEE who wrote (3563)	4/5/1999 8:59:00 AM
From: md1derful	Respond to of 6439

Thread: I'm baaaaaack...Theo, serious new rollercosters at Universal, man..reminds me of being a MO shareholder..

To: S. M. SAIFEE who wrote (3563)	4/5/1999 11:38:00 AM
From: David R. Colby	Respond to of 6439

Gary, Here's what I see in naked LEAP puts as opposed to LEAP calls: 1. Both positions are bullish. 2. The call has no limit on the upside; the put's upside is the opening position price. 3. The naked put uses time in it's favor if the stock does nothing; the call deteriorates. 4. the put allows you more control over capital gains taxes by more control over the timing. 5. Depending on the premimum, the long-term gain by borrowing on margin at, say, 7%, is sizable, but not the "doubles and triples" that most look for with options when they start. If the stock goes down you are assigned and exercise the covered call stratagy if you didn't want the stock in the first place. Being able to buy MO in '01 at 40 with a cost of $31 per share looks good to me.After all, it was the stock you wanted in the first place wasn't it? These are not original thoughts and a better view of this stratagy can be seen by following Edamo on the DELL thread. dave colby