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

To: Jerome who wrote (9814)	5/15/2001 12:46:15 AM
From: Gottfried	Read Replies (2) \| Respond to of 10921

Jerome, the MSN options tactician sold his AMAT calls moneycentral.msn.com Looks like he publishes his trades once a week or so. moneycentral.msn.com G.

To: Jerome who wrote (9814)	5/15/2001 11:12:31 PM
From: Rajiv Hargunani	Read Replies (1) \| Respond to of 10921

Options, alternative strategy to selling calls. This is what I am considering for AMAT in my IRA account. Using closing price on yahoo and the option prices given in the Jun month, buy 100 @ 49.89, Sell the Jun 55 call for $2.25 and with that money buy the Jun 47.5 put for $3.50. My theory is that with todays news about breakeven next Q, possible sell on news of rate cut, weak BtoB due out next week and in June the earnings warning season, I don't see AMAT going up but a possible retest of lower end of the trading range. So if I am correct, and say AMAT goes to lower 40s, I will make money on the Put and will also get credit by selling the call. I will be losing on my purchase price on the shares but I don't mind holding on. However if AMAT closes above 55, then I have made 6-8%(approx, loss of $1.25 ($3.50 - $2.25) in buying the Put, giving me gain of $3.75. excluding commissions) in 4 and half weeks time. I did this with Lam Research in Feb, and worked great. will like to hear opinions and other strategies for playing the semis regards rajiv