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

To: 16yearcycle who wrote (40904)	12/16/2000 6:28:57 PM
From: Jerome	Respond to of 70976

and are you going to keep the stock as investment? First of all lets see how the month plays out. as a general policy I do not buys calls back unless there is some fundamental change in the company outlook that would be a warning that AMAT could go from 40 to 25 (not very likely). But people in taxable accounts frequently want to avoid a call out so as to avoid a taxable event. Especially if their cost basis very, very low. If I got called out of AMAT at any price I would look at others in this group, as alternative place to re-invest. I have no problems with owning a 1000 AMAT and 200 NVLS or 200 AMAT and 1500 NVLS. At todays prices these are relative bargains. (relative to their potential upside). Covered call writing in this group of SEMI's, has one unique advantage. If a call out takes place, you as an investor have to look around the landscape of SEMI's and figure out "where next". If you get called out at 45 or 47 1/2 you might just buy AMAT back at 50 and write the 55's for Feb.. Cross that bridge when you get to it. There are plenty of TA experts on this thread (I'm not one of them) that can give you some good ideas. Jerome