Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 284.31

+5.8%

Jan 5 3:59 PM EST

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To: Steve W. who wrote (10215)	11/1/1997 8:40:00 PM
From: Tito L. Nisperos Jr.	of 70976

Steve, The farther the date of expiration the lesser the time decay of the Option. I find LEAPs as a kind of "pillow" to keep some cash that comes handy when I need them; like if the stock comes down for several days and I'm almost sure that the next moves are to the upside---what I do is sell some LEAPs then buy some near term options...Short term Options do well when the stock Dips 5 to 7% then heads back to hit new highs, like we have had before Aug; but you get slowly killed when the stock go loere and stay in a lower trading range for some time. With LEAPs, it seems we can't go wrong even if we have a trading range for a while like this time---plenty of time for the stock to come back...Selling some LEAPs on the Rise and Buying back or Rolling over to longer term LEAPs on the Dips is a good one...Keeping some cash at all times is a must; one must have a program to take profits as the stock heads higher, save some cash for 7% dips, some cash when the Dips continue 10 to 20%, and the rest for Dips that continue to 25, 45, 60% and more...

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