Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Andreas who wrote (41960)	2/9/2001 12:41:27 AM
From: Conan	Read Replies (1) \| Respond to of 70976

Andreas: How do you report the premiums from your call writing at tax time? I have just started doing this myself (writing 1 month out of the money calls for cash) but wonder what do to when I file my return. Best regards, Conan

To: Andreas who wrote (41960)	2/9/2001 12:45:13 AM
From: advocatedevil	Respond to of 70976

Merrill Lynch comments courtesy of Ray Tang over on the "Semi-Equips - Buy when BLOOD is running in the streets! " thread (post 9492): ============================================ from Merrill Lynch: Advanced Energy (AEIS; $26; D-3-1-9) 01E $2.00 • AEIS reported 4Q00 EPS of $0.61 vs $0.51 Q/Q and $0.27 Y/Y. This was above our estimate and consensus of $0.57 and $0.58 respectively DUE TO LOWER TAX RATE. Revenues were $2 million below our estimate. At a normal tax rate EPS was $0.58. • The outlook is for a 16-20% decline in revenues and EPS to be cut in half in the first quarter. This is a bit weaker than we would have thought given that comparable companies are seeing about 10% declines for the quarter. AEIS supplies the majority of power supplies to AMAT, LRCX, NVLS, etc. so is often looked at as a precursor to business trends at these companies. • The conference call begins at 9:30 am ET. (B. Hodess) ============================================ AdvocateDevil

To: Andreas who wrote (41960)	2/9/2001 9:08:44 AM
From: Jerome	Read Replies (1) \| Respond to of 70976

At that point point my portfolio dropped so much in value and so quickly that I couldn't write calls with any meaningful premium at a strike price that was at or above my cost basis I have written plenty of calls below my cost basis. Lets take AMAT for example. Suppose that you bought it 6 months ago at 65 per share. And you did write at least one call against it. Now the stock is at 42 to 44. Where do I go from here.? Every month I say to myself "here is what I got, and what do I do with it?" If AMAT again moves toward 50 write the 50's one month out for whatever you can get. You might get called out in which case you have a tax loss or you might not get called out.. As far as you can tell is there anything on the one month horizon for AMAT that's going to move the stock from today's price to 60 or 65? The idea here is to wait for a two or three day uptrend in AMAT and the group and then write the next highest strike. Right now I'm facing the same problem with ASYT. All the shares I bought now have an average cost of $22.00 per share. ASYT is now about 15 a share. When ASYT gets to 16 1/2 to 17 I will write the 17 1/2's one month out for whatever I can get. Right now the March 17 1/2's are 7/8 by 1. Better something than nothing.Given the current environment is there anything that is going to make ASYT jump to 25. Ha, don't I wish for such luck. If I do nothing I have an underperforming asset. Jerome