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

To: Math Junkie who wrote (52895)	9/23/2001 8:33:14 AM
From: Tito L. Nisperos Jr.	Respond to of 70976

Richard, RE: “Tito, do you plan on rolling over the 50 calls you bought, and if so when?” Yes. The usual Rollover technique is to sell the Option bought earlier and then to buy the Replacement Option. But what I usually do is to buy the Replacement Option first and then to sell the Option to be replaced when the stock is higher. Let's see, in the Demo I bought: —- 9/7/01 AMAT 10 Calls Apr 50 @ 4.70/sh 9/7/01 AMAT 10 Calls Jan 50 @ 3/sh Then last week I bought the Replacement Options: —- 9/20/01 AMAT 10 Calls Apr 40 @ 2.95/sh 9/20/01 AMAT 10 Calls Jan 40 @ 1.85/sh I'll sell the earlier Jan Options first, probably by the last week of Dec or early Jan if I think there's no danger of the Option expiring worthless at the middle of Jan; the earlier Apr Options I'll sell by Feb or later. As posted earlier, the AMAT prices during the last quarter of the year (we can include Sep) are usually lower than the prices during the 1st quarter of the following year (sometimes until Mar and Apr). I'll RollOver also the Jan bought last week into Jul. In the meantime I'm going to buy more, probably lower expiration prices like 45, 40, 35 and 30 —- as the stock gets lower and lower and as I raise New money (by selling Stocks and LEAPs or whatever). You see the idea is to buy More at lower prices. It's getting interesting again: —- 1996 Low was at about 22 in Sep and Oct, then went up to 40+ before it settled at 35+ by year-end. 1998 Low was at about 22 in Sep and Oct, then went up to 48+ before it settled at 42+ by year-end. Who knows, this Sep and Oct the stock might go as Low as 22 again and then …