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Author: jgunnar Big red star, 1000 posts Old School Fool CAPS All Star Global Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1380  
Subject: LEAPs Date: 8/2/2012 4:27 PM
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Jim

Have you given any thought to LEAPs in conjunction with Special Situations? Its one of the more interesting parts of the Greenblatt book and I think that LEAPs are not great for some investements but they are very helpful risk management tool in Special Situations which have a wider variety of possible outcomes. Control the downside risk in bearish scenario (SVU) and have a bigger position if the bull case (RRGB) comes to pass.

-gunnar
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Author: TMFRoyal Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 224 of 1380
Subject: Re: LEAPs Date: 8/3/2012 10:58 AM
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Hi, gunnar,

Yeah, I don't tend to use options/LEAPS because of the all-or-nothing nature. But you're absolutely right, they can limit the downside on a stock with a wide swath of possible outcomes.

I'll add this to my decision checklist for future choices.

Jim

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