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Technology Stocks : Semi Equipment Analysis
SOXX 294.38-1.0%Nov 7 4:00 PM EST

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To: Cary Salsberg who wrote (5004)9/2/2002 12:29:53 PM
From: Gottfried  Read Replies (1) of 95385
 
Cary, you said >I want to sell way out of the money, ~6 month covered calls when there is a good return and little likelihood that my shares will be called away.<

I have difficulty with the little likelihood part. TA can help some, but drastic price moves have been unexpected. Another approach would be to write/buy calls with smaller returns more often. There's still risk, but it limited and known in advance. Please refer to this link for options prices. finance.yahoo.com

Sell Oct $15.00 calls for $0.95
Buy Oct $16.25 calls for $0.55

Profit is 40 cents and maximum risk is [$1.25 - $ 0.40] if AMAT goes above $16.25

PS: interactivebrokers.com takes $1 per contact as commission.

Gottfried
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