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

To: Jerome who wrote (46011)	4/29/2001 1:20:39 AM
From: FJB	Read Replies (1) \| Respond to of 70976

Jerome, its not a question of trying to outguess the market, its a question of putting capital to work. Probably 70% of my portfolio is the same as it was a year ago. (AMAT, NVLS, LRCX, ESIO, ASYT,KLAC INTC ) I don't think any of those companies will go bankrupt, so that's good. What types of returns have you received on your speculative, trading capital(the options, be honest) over the last year? Bob

To: Jerome who wrote (46011)	4/29/2001 1:33:32 AM
From: Jerome	Respond to of 70976

Strategies with cheap stocks....... When a stock is trading in the 15 to 20 dollar range profits are easier because there is less to go wrong. When a stock is trading at 15 there will be options strikes at 10, 12 1/2, 15, 17 1/2, and 20. And some times options strikes between these prices if the stock has has a recent stock split. This gives the stock buyer some flexibility in the situation Suppose that you bought AMAT at 55 on Monday and on Wednesday it collapses 20 points to 35. Now that's a difficult situation to make whole no matter how good of an option player you are. But I do know that ASYT, CSCO and CPQ are not going to drop 20 points in a day or week and that gives me an advantage. What I have to assume is how much upside is available and how quickly. I assume no downside, because if I did I would not buy the stock. (But I do have contingency plans in the wings if required) If anyone is interested I would be happy to post my expectations and contingency plans for the other stocks I mentioned. Jerome