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Politics : Formerly About Applied Materials
AMAT 319.11+5.7%Jan 15 3:59 PM EST
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To: Jacob Snyder who wrote (54643)10/25/2001 1:50:15 PM
From: Ian@SI  Read Replies (1) of 70976
 
Jacob,

It's safe to say that Lehman has not become a charitable institution; and that they will profit handsomely from this scheme. The $25M looks like a trial balloon to see how easy it is to take in the money.

At first blush, I'd suspect that even a fairly small investor would earn more than 8% after commissions as well as getting most stock appreciation from the stock merely by buying the common, continuously writing a covered call for 2 to 3 months out at one strike up from current price; repurchasing the shares should they be called away.

Of course this is a better strategy now that most stocks and sectors are at a multi year bottom than when everything was at an alltime high...
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