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RE: BBY, GTE, & UCL



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Jack,
     I keep about 20% of my portfolio in LEAP options.  The reason is that 
gives me additional leverage without having to take margin risks and pay 
margin interest.  I use LEAPS because option value is a combination of time 
premium plus intrinsic value.  Since options are wasting assets time premium 
decays with the passage of time.  That decay accelerates during the last few 
months to expiration.  I want to minimize the time decay so I use LEAPS with 
over a year to expiration.  If I only hold it for a few months and the stock 
price doesn't move, I minimize my time decay loss that way.  Also, it just 
gives me a much longer time in which to be right.  If I used near term 
options, I'd have to be right immediately <G>.  There are only a selected 
number of stocks (about 100 I think) with LEAP options, so selection is 
limited.
     Hope that helped.

Jim

-----Original Message-----
From:	jack velte 
Sent:	Wednesday, July 02, 1997 2:55 AM
To:	Jim Greening
Subject:	Re: BBY, GTE, & UCL

would you explain to the group your reasoning why you choose leaps over
stocks and visa-versa?  thanks.

faithfully,

-jack