Formerly About Applied Materials Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Applied Materials

AMAT 261.90

+0.4%

Dec 26 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: shoe who wrote (57655)	12/17/2001 6:41:27 PM
From: BWAC	Read Replies (1) of 70976

Shoe can you run that option scenario again? You sold January 35 covered calls? For how much and how many contracts? Was it $5.30? Did you enter the trade as protection against downside risk? Did you enter it just for the income it provided? I show an ask of $9 on the Jan 35's. With AMAT closing at $43.20 that leaves 80 cents of time value in the Call for the next month and a week. How much time value was built into your current position when you sold it? Compare that to whats left. If you like the answer close the position now. Today. And sell the Jan 40's for $5. Which gives you $1.80 of time valued to watch melt away. Still providing you some downside protection. If you want to take on more risk, close the Jan 35's today and sell the Dec 45's or 42.5's for the premiums left. The 45's still have about 50 cents. Then towards the end of this week, Look to close the new December position out and sell the Jan 45's or 42.5's.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next