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

To: Curlton Latts who wrote (23205)	10/11/1999 1:20:00 AM
From: Ira Player	Respond to of 25960

I believe you are looking at covered calls too harshly. Even if the stock begins to take off, you can get back the upside, by buying back the original call and selling one further out at a higher strike price. For example, I recently had ATHM get away from me. I had earlier sold an October 40 for 3 1/2. ATHM jumped to 46 and started to come back down. I held on. It later jumped to 49. I decided I wanted to hold onto the stock, so repurchased the October 40 for 9 7/8 and sold the January 50 for 7 7/8. I am still + 1 1/2 on the call trades and "bought back" $10 of upside for $2 in premiums. If ATHM drops back before January, I will buy back the January 50 and sell a lower strike, closer in. Covered calls do not have to loose the upside, unless you let them. Ira

To: Curlton Latts who wrote (23205)	10/11/1999 10:59:00 AM
From: Darryl Olson	Respond to of 25960

ASML and AMAT looking strong today. We should follow. Only 10 more trading days until the conference call.

To: Curlton Latts who wrote (23205)	10/11/1999 10:29:00 PM
From: Jerome	Read Replies (2) \| Respond to of 25960

" You're taking high-tech equity risk for no better than a miserly net return at best. If the stock gets hit you're out big " Not at all Curlton, In the past 14 months I've written covered calls on CYMI nine times and got called out twice. Last month was typical the stock closed out at 35 5/8 so I was automatically exercised.A few days later I bought back the same stock at 34. When Cymer peaked at 38 I wrote the Oct. 40's for 2 9/16. Today I undid them for 3/16. If Cymer rallies in the next few days I'll write the 40's or 45's (depending on how much strength it shows prior to the earnings release. Another outcome that has not been discussed on this thread is that CYMER could rally strongly up till the earnings release date and then pull back sharply when the earnings come in at 8 or 10 cents. All the CYMI bulls will be saying things like, "they beat earnings by 2 or 3 cents , what else does the street want?" And someone else will say, "Ya know they got near 100% market share, the stock should be worth another 20 points" All this may be true, but 100% market share and two bucks will get ya a warm draft beer in Grand Junction, Colorado. (and it won't be any of the good Canadian stuff) By the middle of Nov. when options expire CYMI will be trading between 35 and 45. If I get called out I'll just buy the shares back and write the next highest strike. A beer in the hand is worth two behind the bar. Good Luck, Jerome