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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Pink Minion who wrote (9812)	5/13/2001 9:07:34 AM
From: Jerome	Respond to of 10921

Where's the free ride? The third option write would net another $400.00. that would be about $1200.00 on a $5100.00 investment. During Friday when AMAT was higher $425.00 was available. If You look back at AMAT three months ago it was also at 48.00 per share. (The exact closing prices were: Feb. 13th $45.00, March 15th 45.00, April 16th 48.00) . I could have explained this better. My apologies. My point was that once you net a quick 25% gain on a stock like AMAT you are home free. The option brokers (at First Union Securities) where we discuss positions every day for clients use the term "free ride" to describe this position. This is not to say that If you bought AMAT on Monday a call out would not happen in the next 30 days. With dozens of clients that I have talked to at the lounge area open to the public, a call out is preferred. Its when You buy something like SSTI at 17, write one covered call against it at the 17 1/2 strike and watch the stock drop to 9. That's what kills your portfolio. This month of the 9 positions that I use for covered calls only LRCX at 30, and FLEX at 25 are likely candidates for a call out. For people that are risk aversion types there are some Xerox bonds paying a little over 10%. But that's a different ball game and I know little about it. The problem as you are aware of is that investors want to make a lot of money with no risk. And its just not going to happen. I believe this to be a pick and choose market.(strategy wise) The long term buy and hold types will do fine (Brian, Gottfried), the short traders (Jacob), the short term traders , and the option traders (myself), will all do OK. In all this stuff a little luck helps. Regards, Jerome

To: Pink Minion who wrote (9812)	5/14/2001 9:11:26 AM
From: Jerome	Read Replies (2) \| Respond to of 10921

*Earnings, stock movements, & one month options** With the AMAT release of earnings tomorrow, plus the Fed announcement of a rate reduction this week where ever AMAT's stock price is on Thursday will represent the new high for AMAT for the next 30 days. I looked at a dozen tech stocks, from ASYT, AMKR, GLW, FLEX, CSCO, INTC, NVLS, and TER. As they reported earnings the stocks did move higher over the next two days in spite of a poor outlook, but the pop on the stock price went no farther than two days out. (after earnings). Then a modest retreat in the stock price took hold. So what I'm suggestion is that if AMAT gets to 56 or 57 on the earnings and Fed announcement, at that time write either the June 55's or the June 60's for covered call premium. The big negative for AMAT will be the BTB that comes out around the 20th of this month. Because it will be lower then last month, it may spook the very investors that it encouraged last month. The notion that things are getting poorer , but at a slower rate, has got to be false optimism of some sort. If some option position looks interesting to you, lets hear about it. No need to justify it, as an option position represents an opinion of what might work for the next few months. Regards, Jerome