Novellus Message Board - Msg: 15168812

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Technology Stocks : Novellus

NVLS 2.400

+2.1%

Jul 24 5:00 PM EST

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To: Steve Fancy who wrote (3126)	1/11/2001 7:41:07 PM
From: Alan Gallaspy	of 3813

Steve, What do I think? I think the best answer is not much. The short answer is I don't know. I DO think that the secular trends are in place for Novellus to exceed the market average returns over the next few years. That said, given the horrific rundown we have witnessed, I intend to be much more conservative playing the Novellus portion of my portfolio. My plan is to start selling covered calls on half of my position when NVLS hits $50 with options a month out with a strike price about 10% out. If I do get called out, then I will buy calls equivalent to 100% of my NVLS holdings as far out in time and strike as I can and continue selling calls on my remaining half. I figure that I will net at least 35% on my current Novellus holdings if I get completely called out over the next 2 months. After what we have seen in the last few months, that does not seem bad. At worst, I will get to sell calls all year that never get called out and make some $$ off of the infamous Novellus volatility. Anyway, at this point it is just a plan and I am still debating the merits of implementing it, as opposed to just riding out the next few months and seeing what happens.

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