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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 155.15+2.1%Nov 26 3:59 PM EST
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To: John Stewart who wrote (7996)7/18/1999 8:12:00 PM
From: Thomas DeGagne  Read Replies (1) of 10921
 
Your idea of selling deep in the money covered calls as a exit strategy is a good one. In fact, I am planning to use covered calls for an exit strategy in PMCS (a semi company). I will definately look at using year 2000 calls as my cost base is $7.50 and the price is now $82.50

I would be careful with which contracts you sell. There is a danger with Jan calls that the contracts will be exercised before 2000. If this happens your tax benefits will be lost. Consider Mar/Apr calls or even 2001 LEAPS.

If you do a personal study on this please post it hear. I may do the same for PMCS for strategy comparison purposes.

Good luck
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