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

To: Tito L. Nisperos Jr. who wrote (50745)	8/17/2001 8:31:46 AM
From: Jerome	Respond to of 70976

Tito...your view on options is pretty much on the money.... 1) The view that options require perfect timing......not at all true.....If AMAT has a trading range (for now) of 43 to 49...then an option player would buy his options when AMAT was near 43.. The option he chose to buy could be a one month, three month, or leap. 2)Anyone who trades options will tell you that washouts on some positions are to be expected and cannot be avoided Tell me which ones will the washouts and I'll stay clear of them (gg). 3)Here is a likely plan for next week. Monday's have been a down day for the past six weeks and next Monday will probably be more of the same. The Fed meets on Tuesday and Wed. and historically the market trades down while awaiting the Fed's decision. After the Fed decision, there is usually a relief rally of some sort. So an option player would use either Monday or Tuesday as a buy in date for AMAT options of his choice. 4) Options players have to have this branded on their brains........." I should only buy options on the best companies on horrible days for the market in general. When all the talking heads talk about the Nasdaq going to 1500 next week, and there is no reason to rally....thats the day to buy........" 5) Tito is right..... persistence (with a little common sense).... will pay off. Regards, Jerome

To: Tito L. Nisperos Jr. who wrote (50745)	8/19/2001 10:47:53 PM
From: Henry D	Read Replies (1) \| Respond to of 70976

Tito, i went back to some of the messages on this thread from summer to winter 1998 to find any clues for this current downturn. in NOV and DEC, i think HQ and CIBC became bullish on AMAT. Oct 98 was the last "bottom" before the paid anal-ist came out with their recommendations. even if you went long on AMAT DEC 98 missing the Oct bottom, AMAT went up for atleast a year after that. if u were in cash, then bought your LEAPS in DEC 98 after the analyst became bullish, you still would have made a good return with less downside? Henry