Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 261.81

+0.4%

Dec 26 3:59 PM EST

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To: Gottfried who wrote (41952)	2/8/2001 10:29:05 PM
From: Jerome	Read Replies (2) of 70976

Portfolio management in a slack market.... Here is a program that I have been using for the past three years to give me cash flow without a great deal of stock being sold off. To keep things easier to explain , lets ay that I have a portfolio of $100 K and I need to generate $3000.00 a month in cash flow (withdrawals) to keep my lifestyle where its currently at. Using AMAT, NVLS, KLAC, TER, LRCX and a few other miscellaneous stocks I can easily generate about $4000.00 a month in covered call premium using about 60 K of the stocks in my portfolio. Right now the Feb. AMAT 50's and the NVLS 45's and the LRCX 25, and the SSTI' 17 1/2 and the ATML 17 1/2 seem to be safe from call out.But even if they are its no big deal. I just re do the the math after options expire and decide what positions to restart with. I'm looking forward to the day when I can write just one covered call (like AMAT at 60 ten contracts for 5 1/2) and call it a month. My one observation is that as these stocks appreciate the whole thing becomes easier to manage. The preceding is a very accurate representation on a percentage basis of what I do month in and month out. Jerome

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