Semi-Equips - Buy when BLOOD is running in the streets! Message Board

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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!

LRCX 160.52

-4.9%

Dec 12 9:30 AM EST

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To: Ian@SI who wrote (9310)	1/18/2001 10:28:16 PM
From: Jerome	of 10921

With the Calls, one has a measurable risk of losing everything. The risk is the same on both sides of the equation. If a stock is trading at $25.00 per share and I buy a call one month out for $3.00 at the 25 strike. I could lose it all. But if you sell the put for $3.00 and the stock retreats below $25.00 You have to come forth with $2500. So the call buyer has $300.00 at risk and the put seller has $2500 at risk. Its been my experience that call buyers make the dumbest plays. They buy calls as stocks are peaking (like now) and never do figure out what went wrong. I bought all my calls a few weeks back when ASYT was at 10 along with KLIC, as well as LRCX when it was at 14., and lastly when ATML was at 10. At this junction in time I will be selling covered calls for Feb. some time this week. There may be tax advantages to selling puts over buying calls, but I'm not aware of them. For myself I measure how much capital I'm putting at risk for how much gain. If the numbers don't add up to my satisfaction I don't do it. Jerome

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