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


To: Jerome who wrote (40879)12/15/2000 8:35:14 PM
From: Gottfried  Read Replies (3) | Respond to of 70976
 
Jerome, options strategy you use on semi equipment stocks is very much on topic! Please contine to post it. I'm saving your posts because I want to start doing options soon. I will also only do it on companies where I know something about fundamentals.

First naive question: options - especially leaps - prices are not available in chart form, no? So if I wanted to chart a leap vs stock price I'd have to collect options price daily?

Gottfried



To: Jerome who wrote (40879)12/16/2000 4:36:35 PM
From: 16yearcycle  Read Replies (1) | Respond to of 70976
 
Hi Jerome,

If I understand you, when I go to cover my amat short and also buy amat at 38, assuming I get the chance, I should also sell amat jan 42.5 or 40 calls?



To: Jerome who wrote (40879)12/18/2000 1:32:04 PM
From: mitch-c  Respond to of 70976
 
30% OT - AMAT Option Strategies

Tito has written some excellent posts on options, especially LEAPs. I prefer the strategies - like covered calls, buying calls, and buying puts - where the maximum loss of capital is limited to the investment. (No open-ended loss potential, as in short-selling.)

Open ended discussion question to be punted around - Tito has been quite successful using LEAP calls as the stock increases. What is everyone's thought about an out-of-money LEAP put strategy - buying them as the stock peaks - as well as Tito's LEAP call strategy? Since this *is* a cyclic stock, the same argument for catching the peak ought to work for the trough.

I haven't priced them, but I think Jan 00 or 01 puts at 60 might have been pretty cheap last spring ...

- Mitch