Lam Research (LRCX, NASDAQ): To the Insiders 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.

Technology Stocks : Lam Research (LRCX, NASDAQ): To the Insiders

LRCX 164.06

+3.0%

11:42 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Kirk © who wrote (4240)	7/30/2000 4:17:48 PM
From: Jerome	Read Replies (1) of 5867

>> Why not just buy LRCX at $28 and sit tight and wait for $55?<< Several Reasons; LRCX may hit 55 next month or l5 months from now. I don't know the time frame. I write covered calls for income. My bank does not want to hear that I will pay up when LRCX hits 55. I'd be pushing a grocery cart complete with sleeping bag and water jug.(perhaps beer) Kirk your greed is getting in the way of things. Suppose that you deposited $2800 in the bank tomorrow. and on and on the 18th of August they paid you back $3158. Would you complain? This is an oversimplification of writing a covered call on LRCX. I do not recommend writing a covered call on all positions in a portfolio. I would suggest writing out of the money covered calls on 30% to 50% of any stock position. The strike price is usually about 5 points above the stock price when options expire in any given month. If a call out occurs then the un-optioned positions will carry the portfolio upward. I have felt that a $100,000 portfolio divided among 6 to 10 stocks in the semi group should easily generate 1 to 2 thousand dollars per month in income. In the worse case senario (where these stocks go nowhere for a year) the portfolio will have generated $12,000 to $24,000 of positive cash flow. I have been doing this for ten years on stocks in the semi area. I'm not broke, not wealthy, and not reading the want ads. The problem with buy and hold and do nothing is this. Buy a stock at 28, a year later it is at 31, then next year its at 29 1/2 and next year its at 32.And every month you say to your self, this is the month it goes to 40. In those 36 months at least 20 covered calls could have been written netting about $150.00 a month in income. Besides a person's basic living needs the difference between a lot of wealth and a little wealth when one checks out is this.If I die wealthy my kids will all be driving new Ford Explorers, if I die substantially less wealthy they will all be driving new Ford Escorts. (Hell let'm suffer). Regards, Jerome

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next