Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 229.05

+1.3%

12:57 PM EST

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To: michael97123 who wrote (52615)	9/20/2001 8:29:57 AM
From: Jerome	Read Replies (1) of 70976

Mike...no big hurry to buy leaps yet... As the price of AMAT and NVLS falls the forward premium for the leaps keeps shrinking. Because the outlook is so poor for most tech stocks the premium will change very little is AMAT is at 28 or at 30. I think it would be a better move to wait for a slight recovery prior to buying leaps. Right now if the AMAT 30's are purchased AMAT could drop to the 22 to 26 range, and those leaps would be an immediate loser. But if you wait until AMAT gets to 34 to 36 you will pay more for the 30's or the 35's but the fear of a drop to the 22 range will be much less. What I'm saying is that I would feel better buying leaps in an uptrending market rather than in a downtrending market. Now if you still feel determined to buy some leaps....give yourself a fair chance. Wait for another huge down side (Friday near the close or Monday about 1 PM Eastern). And keep in mind that leap values will fall the most on the day following the big down draft. And even with all this information its possible to fail miserably. Regards, Jerome

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