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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Beltran who wrote (37913)	10/5/2000 9:24:58 PM
From: Jerome	Read Replies (1) \| Respond to of 70976

>>not experiencing even a slight "technical bounce" from very oversold conditions. For example, CMOS, BRKS, and ASYT << I have observed the same. Without getting into what part of the cycle we in, or where to from here, I prefer to deal with what the market hands me. With ASYT my plan calls for buying some below 19 and immediately write the Nov covered calls at either the 20 strike for two or the 25's for 1. With BRKS buy below 25 and write the Nov.25,s for 3 or the Nov 30's for 1 1/2. In a flat market for these stocks there is a chance that they will stay depressed for a few months. The result would be almost no premium going forward. (KLIC is the best example of this phenomenon) Keep in mind that there are thread viewers that disdain covered call writing. But as with BRKS I would be delighted to buy at 25 get called at 30 plus the premium in only six weeks. I personally believe that we are in for a very choppy market, where every piece of data is superficially examined, extrapolated to the entire tech sector, (DELL, INTC etc.)and some of the analysts call it the beginning of the end. The second problem we face in this semi area is investors selling into any signs of strength. I wonder how many investors bought AMAT at 80+ or or ASYT at 40+ and are waiting for any recovery to get out now. Having been burned in these high quality techs, they are the next buyers of JDSU and Krispy Kreme. After all we should all own winners. Regards, Jerome