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.

Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: Gerald Walls who wrote (23344)	5/28/1999 1:31:00 AM
From: ed	Read Replies (1) \| Respond to of 74651

Buy 2002 $110 leaps at $13 5/8. At expiration , sell 50% of the leap and exercise the other 50% , and hold them for long long time. By the end of 1999, this leap will definitely deep in money, and your time cost per month for 30 month is $13.625 / 30 = $0.454 / month. If Microsoft appreciates $2 per month for the rest of 24 months after Jan 2000, the profit to cost ratio is 440 % , not bad at all. If MSFT appreciated another 150% by year 2002, say $250 , then your profit margin is (250 - 110) / 13.625 = 1100% , in 2 and half years , not bad at all. However, I will always exercise my Leap option at expiration , and did this since 1994 for free shares( with little time premium) , i.e exercise 50% and exercise the other 50% for free...