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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (23186)	10/10/1999 12:01:00 AM
From: Jerome	Read Replies (1) \| Respond to of 25960

This is the best option play for the week. (covered call) Buy at 36 1/2 or as close to that price as possible . The Nov. 40's closed at 2 1/4 x 2 5/8. The are six weeks between the purchase of the stock and the option expiration. 100 shares of CYMI at 36 1/2 close out the position in six weeks for a minimum profit of $575.00. From the $575.00 are subtracted 3 commissions . One for buying the stock, one for writing the covered call and one for the sale of the stock if it is called away. Using Fidelity for determining my cost basis for the three trades commissions would be $57.00. This nets out to a 14% return for the six weeks. Not a bad return, considering the market gyrations recently. The best resolution for this position is for the stock to be called away. The worst resolution is that you write the covered call at 2 1/4 or better and the stock returns to the low 30's and stays there. It has been brought to my attention that thread posters are not interested in CYMI options. But in the past I have noticed that when I post a worthwhile option strategy for CYMI (or KLIC, or MTSN or some other stock in this group) There is significant option activity the next day on the strategy posted. By the time CYMI appreciated a 100% from its current price, I hope to have gained about 140% in appreciative value. Or looking at it from an accountants perspective my cost basis will be 0 or less. Good Trading, Jerome