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Technology Stocks : Semi Equipment Analysis
SOXX 314.52-0.6%Dec 11 4:00 PM EST

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To: auriculatus who wrote (31377)7/11/2006 9:15:54 AM
From: Jerome   of 95574
 
Selling the call...NVLS 25's vs NVLS 27 1/2

Lets say your cost basis for NVLS is 27.65

If you sell today at market your loss would be 4.33 per share
(27.65 -23.33 yesterdays close)

If you sell the cc at 25 your loss would be 2.65 per share minus the premium for the call

If You sell the cc at 27.50 and get call out your loss is .15/per share and the premium may put you in the black.

I use this formula for all the semi-equipment stocks that I own. (AMAT, KLAC, NVLS, MXIM, MU, TER etc.

A small loss is better than a big loss and when this sector recovers I will still be holding almost all of the stocks I now own.
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