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

To: FJB who wrote (23316)	10/20/1999 9:55:00 PM
From: Jerome	Respond to of 25960

"I thought you would be pleased with the down move in the sector, because you wrote calls on your positions?" Not at all. The ideal resolution is to get called out of everything with a good premium. Every month is another challenge. If Cymer kept rising at 5 point per month pace, the call premium going forward would also increase. The worst case outcome as far as I can tell is to write some covered calls at 35 strike (1 3/4 by 2) and after earnings have the stock drift lower day by day ( a 1/4 here and 3/8's there) till it settles at 25 or so. And every day I would say to myself this is the bottom only to be fooled again. Curlton said to sell some naked puts (he was kidding) so I looked up the Nov. 25's To my surprise they were worth 3/4. (5/8 by 13/16)vol.20 Maybe someone figured out a bull put spread. (sell a naked put and buy a call below it). If CYMI rises the call appreciates and the put is wiped out. If CYMI falls the call is wasted and the put becomes profitable. This strategy works best if it is anticipated that the stock will rise over the selected time period. Any guesses on your part on the BTB figure to be released tomorrow? My guess (Hope is a better word) 1.11 Other guesses accepted. Jerome