Formerly About Applied Materials Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials

AMAT 230.77

+0.9%

Nov 12 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jacob Snyder who wrote (32540)	9/21/1999 9:07:00 PM
From: Robert O	Read Replies (1) of 70976

I guess the more conservative approach would be to sell covered calls. While munching on captured premium dollars, continue to sell more at each interval down. In this fashion you 'win' in a plateau-ing mrkt. or just slightly decreasing mrkt. versus puts. Only given a 'decent' sized drop does your put play pay off nicely for the considerable risk of puts expiring worthless in flat mrkt. You said yourself you only wanted to 'hedge my overvalued portfolio against [an expected 20%] market decline?' What if it's only 5% down then right back on the steady tech march we know and love? My background commands me to tell you that a L-T buy and hold strategy is always best. Plus, you may remember my take: feel the bid/ask, MM game playing, trade costs, bizarre 'unfair' pricing of options (option index plays to be sure) are not worth the investment given the risk/return profile. Having said all that it does appear like this may be the start of a downturn although it really didn't 'clobber' large cap techs today like the beg. of a true big-time mudslide would. Oh, if I remember right you did quite well with calls on AMAT so maybe you have the 'Midas' timing touch... just can't believe ANYONE would Put CSCO... literally, at any time at any price. It's near-magical. FWIW, RO

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next