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

To: Sam Citron who wrote (43165)	3/5/2001 10:07:51 PM
From: Ian@SI	Read Replies (1) \| Respond to of 70976

Sam, If you sell a LEAP put, you must be prepared to have the shares PUT to you at any time between now and the LEAP expiration. That obligation may be sufficient to make one hesitant about actually buying stock just in case it doesn't go up. Downside of selling PUTs, LEAP or otherwise, is that all you get is the Premium which may not be sufficient to cover the downside; and almost certainly wouldn't compensate you for the lost upside opportunity. i.e. If the much feared recession happens, you get to own some shares - perhaps more than you want. If it doesn't, you get to regret not owning the shares. Just a couple random thoughts. Ian.

To: Sam Citron who wrote (43165)	3/6/2001 5:02:55 PM
From: Cary Salsberg	Read Replies (1) \| Respond to of 70976

Sam, I have read your recent posts. YOU ARE AN OPTIMIST! I want to wind up with stock not LEAPS. I don't want the additional problem of timing. Tech stocks have fallen 60,70,80%, but there is NO capitulation. Anything with quality is still priced for a quick inventory correction and then off to the tech races. I would rather wind up holding more cash because I don't believe that the tech bull will return with a vengence any time soon.