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

To: michael97123 who wrote (38899)	10/27/2000 8:38:55 PM
From: Jerome	Read Replies (2) \| Respond to of 70976

The puts at a 50 strike are a tricky thing because you & I do not know what the intent of the buyer or seller was. For example many thread viewers would agree that this sector as well as AMAT is oversold. AMAT might drop below 50 but not for long. So rather than sell the stock the shareholder buys some insurance (50 puts) instead of selling the stock. A second observation would be that almost 4000 puts were sold relative to 2000 calls. This would be a very bullish indicator for AMAT. A better plan would be to buy deep in the money calls about six months out. Or sell some out of the money calls 4 to 6 months out. Isn't it possible that the analysts would see the heavy action in puts and start upgrading AMAT on a price basis. A little price manipulation to line the MM's nest. Now if anyone wants to buy some AMAT puts because they know the price is going down (herd mentality) have at it, but I don't recall the last time such a rush to buy puts proved provident. Jerome