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Technology Stocks : Texas Instruments - Good buy now or should we wait? -- Ignore unavailable to you. Want to Upgrade?

To: Jimbo who wrote (4700)	10/24/1999 5:35:00 PM
From: Tavros	Respond to of 6180

Jimbo, I assume nice piece of detective work on your part (TXN/QCOM connection?). Checking your profile I also noticed that you follow many stocks that I do as well (EMC, IBM, CSCO, AOL). Back to the topic of TXN options. I, personally, believe that TXN will rebound from these levels. On the basis of this assumption, one can do express this view with many different trades, depending on his/her horizon. I, for instance, do not like to have to deal with short-term capital gains (wishfull thinking? - Yes), so I prefer long-term options (LEAPS which take me longer than 12 months). I have not looked at the premiums but I would favor selling puts at 90, 100, or higher, and with the premium collected, I would buy calls (the strike price depending on whether you want to put any additional money down, or just just use the premiums collected). Keep in mind that if you, for example say, you sell puts at 100 and buy calls a 90, you are doubling your position in the price range between 90 and 100. Play around with the premiums and strike prices and you will get some interesting insights. If TXN runs up as we expect, you buy back the puts (depending on your tax situation) and you let the calls run. Depending upon your risk aversion, liquidity and objectives, you can only sell puts, or buy calls. I hope the above helps. To be more specific, I need to look at the premiums and know a bit more about you. I leave the rest to you. Rgds Tavros PS: Since I have a full-time job (not in equities) and travel a lot, I do not always look at the Board, so apologies if I do no respond in time.

To: Jimbo who wrote (4700)	10/24/1999 5:50:00 PM
From: Tavros	Read Replies (2) \| Respond to of 6180

Jimbo, Out of curiosity, I skimmed through your postings over the past few months. It is safe to say that your style is more short-term trading oriented, and you utilize options to express your short-term views (combined with views of cheap/dear views on premiums). Chances are, what I suggested to you, will not do the trick for you because it will "lock-up" your buying/selling power for longer periods of time. It would be interesting to see how far you go with this approach (if I am right that this is your approach). Your comments on your experience are welcome. Rgds Tavros