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

To: Gottfried who wrote (41952)	2/8/2001 10:29:05 PM
From: Jerome	Read Replies (2) \| Respond to of 70976

Portfolio management in a slack market.... Here is a program that I have been using for the past three years to give me cash flow without a great deal of stock being sold off. To keep things easier to explain , lets ay that I have a portfolio of $100 K and I need to generate $3000.00 a month in cash flow (withdrawals) to keep my lifestyle where its currently at. Using AMAT, NVLS, KLAC, TER, LRCX and a few other miscellaneous stocks I can easily generate about $4000.00 a month in covered call premium using about 60 K of the stocks in my portfolio. Right now the Feb. AMAT 50's and the NVLS 45's and the LRCX 25, and the SSTI' 17 1/2 and the ATML 17 1/2 seem to be safe from call out.But even if they are its no big deal. I just re do the the math after options expire and decide what positions to restart with. I'm looking forward to the day when I can write just one covered call (like AMAT at 60 ten contracts for 5 1/2) and call it a month. My one observation is that as these stocks appreciate the whole thing becomes easier to manage. The preceding is a very accurate representation on a percentage basis of what I do month in and month out. Jerome

To: Gottfried who wrote (41952)	2/8/2001 10:56:25 PM
From: Andreas	Read Replies (1) \| Respond to of 70976

Gottfried; I looked at each of the graphs you provided. Thanks, they are a great source of data. I wonder if anyone has been able to determine any correlation between the amat stock price and any of the graphs. I wonder if there is a meaningful correlation between price and btb or price and backlog or price and anything else. Any thoughts?

To: Gottfried who wrote (41952)	2/9/2001 12:09:53 PM
From: John Trader	Read Replies (2) \| Respond to of 70976

Gottfried, Thanks for the info. Here are two positive thoughts, FWIW: Briefing.com, in their tech stock analysis for today argues that the Fed is likely to cut rates within the next couple of weeks by 25 - 50bp. Also, someone posted the following on the Raging Bull thread today: "200mm has hit the wall, but 300mm is going strong. Demand way out past supply. The only reason for the Fridays off is because they haven't been able to get the 300mm up fast enough to take the slack given out by 200mm. Two months and back to weekends." ragingbull.lycos.com John

To: Gottfried who wrote (41952)	2/9/2001 2:29:34 PM
From: mitch-c	Read Replies (1) \| Respond to of 70976

John, I never even understood the difference between strategy and tactics. :) Well, as an investor with a military background, I think I can bridge that gap. <g> Very simplified, Strategy is your plan of where to go; Tactics are your choices of how to get there. (The Army uses a third term, Operations, that blends elements of the two.) So, for an example, most of us earn money working for someone else - a strategic decision. Choosing which company and what job to do is more at the operational level. The choice of transportation to that job (bike/car/bus/train) is a daily tactical decision, as are the route and time of travel. Many of us find an optimal combination of commute tactics, and those become habits. As a generalization, I think of Strategy as more proactive (making a plan) and Tactics as reactive (adapting to changing conditions). In the investing world, I think of Tito's LEAP approach as a strategy; LTBH as a strategy; and day-trading as a strategy. Each is a plan to maximize return. However, choices of entry/exit points, strike prices of options, limits on orders, and such are more tactical decisions. Just as in most other things, poorly executed tactics can overcome a sound strategy, and well-executed tactics may be futile in the service of a flawed plan. - Mitch PS - I just watched _A Bridge Too Far_ last night with some friends. It's about the WWII allied Operation Market-Garden, and is a classic example of flawed strategy overcoming superior - often heroic - tactics.