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Politics : Formerly About Applied Materials

AMAT 307.20

+2.0%

Jan 12 3:59 PM EST

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To: Tito L. Nisperos Jr. who wrote (11274)	11/23/1997 11:41:00 AM
From: Tito L. Nisperos Jr.	Read Replies (1) of 70976

To Anybody Who Bought AMAT LEAPs due to my Recommendations:--- The stock was 1/16 shy of hitting 40 last Friday but let's go on and update on our small investment, anyway. I missed taking note of the Bid price of the LEAP when the stock almost hit 40 (Bid price is the one where we sell at market)---but let's figure out things using the High at 10/share...To refresh your memory, we sold 100 shares of the stock at 29 and bought 5 Calls of the Jan '99 40 LEAPs (VPJAH) using the proceeds of the sale of the stock---2900 plus commissions for the sale of the stock and the purchase of the LEAPs to make it 3100 as total cost of the LEAPs... So, using 10/share, the value of our LEAPs leaped to 5000---a gain of 1900 or 61% from 3100...By comparison, the 100 shares (if we did not sell) could have grown to 4000 only (the High rounded to 40) with a gain of 1100 or 38% from 2900...So, as we can see, the LEAP is outperforming the stock in the Upside; but take note also that the LEAP will lose a lot compared to the stock in the Downside... For those of us who bought at 54 and have a paper loss of more than 45% when the stock Dipped to 29 (5400 to 2900), we almost got even at 40. That's what my saying---"When down, relax and think; rise up with a Kick" ---is all about... I won't encourage you to sell now---you might say later---"...it's Tito's fault..." if you miss some more in the Upside; but remember, you have all the opportunities to take profit now...We'll update again when the stock hit 45, 50...and so on...

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