Silicon Valley Group 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 : Silicon Valley Group

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Cary Salsberg who wrote (2908)	10/2/2000 11:17:29 PM
From: Jerome	of 2946

Still some decent money to be made from SVGI.Here is how I intend to play it. In the next two days I will buy some March 30 calls on SVGI for about 7 1/2 to 8. Five contracts will cost $4000.00 dollars. I will sell 500 shares of SVGI for 34 (about there) The net will be $17500. $17500 minus $4000 equals $13500 to be used for the purchase of some other quality stock in the next few days. My choice would be LRCX because they are an early reporter for earnings and a decent covered call write. The advantage of this strategy is that if ASML rises in price so will the options. The values that Americans attach to a company are different than the values attached by Europeans. This provides some support to the price of ASML.The most notable example of this difference in valuations is to look at European auto stocks. F and GM would love to be valued the same as their European cousins. If an investor were very nervous about this group at this time he (or she) could keep the $13500 in cash or buy LRCX at about 23 and immediately write the Oct.25's for at least 1. Trading in a down market has its hazards, but doing nothing does not pay the rent. If some one has a better strategy, lets hear it. Regards, Jerome

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next