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Strategies & Market Trends : The Covered Calls for Dummies Thread -- Ignore unavailable to you. Want to Upgrade?

To: PoetTrader who wrote (2176)	8/22/2001 10:45:46 AM
From: rydad	Read Replies (2) \| Respond to of 5205

Good Morning, I was thinking of selling Puts this morning on QCOM ($60) and AMAT ($43). Unfortunately AMAT is rallying this morning. I have been contemplating which company I wouldn't mind accumulating. A company that I felt would absolutely survive this downturn. Then I saw an article on Applied Materials in Investor Business Daily last night. It has always been one of my favorites. Its near its lows and the article states that it may be at its bottom. One thing I feel is that the semi equipment makers and the semi makers will be among the first to turn up when the economy turns around. So that's my pick to write my first put. I'll probably sell my put at Jan 40 at $4.7. I feel this is relatively safe. I'm protected down to about $35 and besides, I wouldn't mind accumulating it anyways. Now I wouldn't my selling puts on QCOM , maybe Jan 50 @ $4.8. But I'm not sure I should jump into selling puts so quickly. If I sold 2 puts for each stock my risk exposure would be (2 x $40) + (2 x $50) = $18,000 if they both get assigned. Not sure if I want to be on the hook to cover both of those.