swolf

Indexing On Steroids

Thanks for the information - the major risk in rolling forward LEAPs as you suggest (when tied to a stable index fund -- such as S&P 500) is the interest rate risk. If the stock market tanks and the interest rates also shoot up, you may have a large decline in value of the LEAP coupled with a high interest premium when you roll forward -- this may or may not have a pretty drastic effect on the amount of return you will get in the long run. If you have done analysis on this scenario and can post results, that will be helpful.