Intel

One example of how cheap leaps are is the fact that you can buy Jan 08 INTC leaps at 11.45. With the stock at 21.20, this represents a premium of 25cts for just shy of 11 months. This is too cheap and should be bought. If you want another year, say the jan 09's, the are offered at 11:60, or a 40cts premium out nearly two years. This is toooo cheap. Even if the stock does nothing, vols are not going to stay at this level for two years. At some point we will see a spike in vol's and these options will gain in value simply from that.

Other options that are cheap are CSCO. YHOO options are still cheap, but have jumped in price with the move above 30