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

To: orkrious who wrote (47816)	6/10/2001 11:52:11 AM
From: robert b furman	Respond to of 70976

Hi Jay, That being the case, Selling a naked put on a stock would like to own,would be a mildly bullish approach. If it went down, that puts the decay of time on your side and/or you buy a stock you like at a great price.JMHO Bob

To: orkrious who wrote (47816)	6/10/2001 12:42:29 PM
From: Jerome	Respond to of 70976

Jay,....another way to approach the problem of over valued stocks. Lets keep TER for the example. I said if TER falls to 42 1/2 I would buy it and write the 45's for July. If I was concerned about a drop off ( in the immediate future) then I would buy it at 42 1/2 and write the 40's one month out. This is exactly what KDAVY suggested in his last two posts. If all of this is outside of your comfort zone don't do it.My other suggestion is to do this with a small amount of stock. I think that its tradition that investors hear of a good strategy, jump on it with both feet and them complain of a back ache. Its just like a good Pizza... you don't have to eat the whole darn thing.( save some for the street folks). Regards, Jerome