Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 301.11

+6.9%

Jan 9 9:30 AM EST

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To: akidron who wrote (10177)	11/1/1997 7:11:00 AM
From: Steve Byers	of 70976

I disagree with one point in your post... and only to a degree... that chip prices ARE falling because of reduced demand (versus expected demand---actual demand is still increased over prior periods, but below expectations of 6 or 8 weeks ago)... AND because of the increased productivity that comes with each life cycle as it matures (in its 18-24 month phase)... so one the one hand it IS due to productivity gains and demand, bu talso the maturity of the cycle AND somewhat lower expectations...I believe that Dell was hit the past few days as it announced it was somewhat below expectations on sales.... but I haven't seen this myself... I'm long, and own the dec 37.5's (calls) and am short the 32.5 puts in Nov... another nice way to take in money to offset belief that prices will rise, but not sure how much... and if I'm wrong and amat is below 32.5 on nov 21... wallah... I own it at 32.5 less the premium... which I believe was 2 1/2 or so... buying at 30 is not bad... and if its higher which I truly expect... then the premium is mine and the calls are in the money as well as the underlying...I've sold 40 nov puts at 32.5 and own 40 calls for dec at 37.5 and am also short 30 jan 40 puts, so in a way, I hope there is questionable news in the earnings conference call so I am put the stock... but long term this is a buy point in this range for wealth accumulation... we'll see soon enough... good luck

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