Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 259.21

-4.0%

Dec 12 9:30 AM EST

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To: Steve W. who wrote (12552)	12/2/1997 12:27:00 PM
From: Tito L. Nisperos Jr.	Read Replies (1) of 70976

Steve, for some reason the Big AMAT traders (those who move the stock up little by little everyday that last to about 2 months) seems to favor the low 60s or the low 30s as their staging area. Some 2 years ago they made their move from 63 to 120---which I agonizingly watched and missed. Last year, they Yoyoed the stock from above 40 to 30---3 times, the last one we saw the stock bottomed at the low 20s. Then, lately we saw their move again from the low 60s to 108!...Now at the low 30s they might start their move again...At least we could see the stock Yoyo from about 40 to about 30 in the short term... The time to buy LEAPs is from Nov to the 3rd week of Dec; the time to sell or roll-over to additional 1 yr life is 5 to 6 months before the LEAPs expire from Jul to Aug---when there are still substancial time premiums left. Many people don't realize it but LEAPs can be traded short term like a stock, they seem to believe that once they buy the LEAPs they are helpless to do anything when the stock goes lower (the roll-over can be made also at any point of time like when the stock is about to go lower short term---selling near the top and buying the longer term LEAPs at the short term bottom); the advantage to the trader is that he puts up lesser money aside from selling the LEAPs at higher than average premium in the upside and buying back the LEAPs at discount premiums in the downside...

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