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: Ian@SI who wrote (43193)	3/6/2001 11:29:40 AM
From: Sam Citron	Read Replies (1) \| Respond to of 70976

Ian, But the point is that I would be hoping for an early exercise so that I am long the shares. I would not intend to close out the short put position. Either I get the shares at the price point I want or I just pocket the premium. Either way I win. Remember the context. I posed the short put as an alternative to Cary's proposed scale down buy and hold program starting 25% (but now closer to 30%) below the market price. I told Cary that I thought he would be lucky to get even his first tranche at those prices. In comparison, take a look at the AMAT Jan '03 40 put that now fetches 9.125 (bid). I just shorted 3 of them. The parameters are now certain. Either I will buy 300 AMAT at a net cost of $31 or I simply pocket the $2,700 rent that I have collected for being willing to make the commitment. I am quite indifferent as between these two outcomes. I challenge you to show me how I would be better off taking an unlikely bet that I get an execution on a Buy 300 AMAT 31 GTC. Sam