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 159.84

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3:44 PM EST

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To: Pink Minion who wrote (9812)	5/13/2001 9:07:34 AM
From: Jerome	of 10921

Where's the free ride? The third option write would net another $400.00. that would be about $1200.00 on a $5100.00 investment. During Friday when AMAT was higher $425.00 was available. If You look back at AMAT three months ago it was also at 48.00 per share. (The exact closing prices were: Feb. 13th $45.00, March 15th 45.00, April 16th 48.00) . I could have explained this better. My apologies. My point was that once you net a quick 25% gain on a stock like AMAT you are home free. The option brokers (at First Union Securities) where we discuss positions every day for clients use the term "free ride" to describe this position. This is not to say that If you bought AMAT on Monday a call out would not happen in the next 30 days. With dozens of clients that I have talked to at the lounge area open to the public, a call out is preferred. Its when You buy something like SSTI at 17, write one covered call against it at the 17 1/2 strike and watch the stock drop to 9. That's what kills your portfolio. This month of the 9 positions that I use for covered calls only LRCX at 30, and FLEX at 25 are likely candidates for a call out. For people that are risk aversion types there are some Xerox bonds paying a little over 10%. But that's a different ball game and I know little about it. The problem as you are aware of is that investors want to make a lot of money with no risk. And its just not going to happen. I believe this to be a pick and choose market.(strategy wise) The long term buy and hold types will do fine (Brian, Gottfried), the short traders (Jacob), the short term traders , and the option traders (myself), will all do OK. In all this stuff a little luck helps. Regards, Jerome

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