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Technology Stocks : Kulicke and Soffa
KLIC 37.57-3.7%3:59 PM EST

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To: Douglas Rhodes who wrote (3492)9/14/1999 11:04:00 PM
From: Jerome  Read Replies (2) of 5482
 
We'll know in a few days if the 22 1/2's are safe. I have been trading options for about ten years. Its my observation that a good trader goes through periods of time when nothing goes wrong and other periods of time where nothing works out. Just like chasin' women. Its either feast or famine.

If KLIC trades down from here I'd buy the 221/2's Jan or longer. Since this group is trending upward, there are certain characteristics that I look for.
1)A stock that is trending upward for the past few months.
2) A company that has a good chance of beating estimates for earnings
3) A stock that has pulled back at least 10% from its recent high for no apparent reason.

Right now options on AMAT, LRCX, & NVLS are far to pricy for the risk involved. But there are a number of other companies that have just started to move. In this category I would be looking at COHU, KLIC, EGLS, VECO, and MTSN. Options on these stocks carry very little premium.

Just my 2 cents

Jerome
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