Applied Materials No-Politics Thread (AMAT) Message Board

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Technology Stocks : Applied Materials No-Politics Thread (AMAT)

AMAT 225.54

-1.4%

3:40 PM EST

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To: StanX Long who wrote (432)	11/11/2001 8:20:00 PM
From: Jerome	Read Replies (2) of 25522

The AMAT plan for the week...... The Friday closing price on AMAT was 38.57... The options for Nov. are the following 40's at .90 x1.15, 42.50's at .25 x.45 My assumption here would be that AMAT rallies Mon. Tues, and Wed. This would be consistent with the behavior of other big caps prior to the release of earnings. The option to buy would be the Nov.40's at a limit of .90 the covered call to write would be the 42.50 at a limit of .90...For this to work AMAT would have to rally to 40.75 to 41.50....about a 2.25 point move. This is not an unrealistic expectation Another factor not previously mentioned. It has been mentioned that there is a lot of sideline money because investors started drawing money out of mutual funds about 6 months ago. But that's just half the total... working investors have been adding their 401 K monies to money markets as well. (because if they were adding it to mutual funds it would have shown up and it didn't)So the side line money is much greater than just the monies withdrawn from mutual funds. What I'm suggesting is that this rally continues as small amounts of the side lined money keeps us at current valuations and even pushes the Nasdaq higher. This is not a time to be short unless you don't have enough losses so far this year.... Since this is a no politics thread I'll have to find that "Bush Admiration Thread" and give 'em a proper stir for a Sunday nite. Good Trading, Jerome

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