Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 256.89

-1.2%

Dec 31 3:59 PM EST

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To: Big Bucks who wrote (10181)	10/31/1997 10:46:00 PM
From: akidron	Read Replies (2) of 70976

I don't have targets in exactly that way. If there is mommentum before the earnings, given the fact that there is little doubt that there is fear ectched into the price of the stock, I would probably wait and sell on the Friday (21st). If the movement is like we have seen this week - unenthusiastic. I will sell the stock I bought this week at 31 at 35-36 and cover the earnings by buying a cheap out-of the-money option. If the movement next week is down. I will simply double up on all my positions and perhaps buy the 35's or even the 32.5's. The point is - IMHO - to leave yourself with cash so that you don't have to be right first time, and in option trading to be prepared to let out-of-the money options expire, because fear will kill the upside of a big + earnings surprise. Incidently I never cover stock profit with putts, it just adds to your cost in the long run

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