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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 164.70+3.4%9:51 AM EST
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To: Sampat Saraf who wrote (9845)5/20/2001 8:25:05 PM
From: Jerome  Read Replies (2) of 10921
 
Sam Saraf, I got called out of some ASYT at the 20 strike this month. In as much as they missed earnings by a whole bunch, and gave a very poor outlook for the next quarter or so. I intend to write the remaining of my shares off at the 22 1/2 strike for June. I might get called out at 22 1/2 ( and still a small loss), but I don't want to get caught in any more down drafts with this stock.

Here is how I see things with ASYT. (keep in mind that I could be totally wrong). I paid about 25 for my ASYT and wrote a few covered calls against the position. The last quarterly report was terrible with little hope a recovery within the next two quarters, ASYT will trade anywhere between 15 and 24. (15 being honest despair and 24 being boundless hope). Rather then ride it down to 15 when I think it belongs, I will write the 22 1/2's for what ever I can get on Monday. My rationalization would be this. A call out at 22 1/2 would represent selling at a 6% loss. But selling at 15 would represent a 40% loss. So, which loss would you rather have. Sometimes a small loss on a stock can be considered a big victory. Ask any of the folks that bought CSCO at 60 if they would take 51 tomorrow.

Thats how I see things, and it differs from some folks that "never sell at a loss". You might get better advice from some of your bar room buddies for the price of a beer. Where I hang out a Phd stands for "Post Hole Digger". Sorry I couldn't help you much.

Jerome
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