Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: StanX Long who wrote (54185)	10/16/2001 6:47:47 AM
From: Alastair McIntosh	Read Replies (1) \| Respond to of 70976

Stan, the first calculation appears to be correct. However the percent gain on the stock only calculation appears to be in error. The gain on the share purchase is $170,000 - $67,280 = $102,720. Percentage gain is 102,720(100)/67,280 = 152.7%. Warning: Do not attempt arithmetical calculations late at night. Al

To: StanX Long who wrote (54185)	10/16/2001 8:24:02 AM
From: Sampat Saraf	Read Replies (2) \| Respond to of 70976

Stan, The options can be more rewarding as well as more risky. I had bought some leaps on Microsoft in 2000 when Microsoft dipped to 75 from 100. I thought it did not participate in in technology bubble valuation and should follow thru to higher valuation over a two year period. Now the leaps are going to expire worthless in Jan 2002 as the strike is 100. For your scenario, returns on your investment as a function of Jan 03 AMAT price will be as below. See the negative returns for options if stock price is below 47 in jan 2003. Option Share Jan 03 Option Share Cost Cost Price Return Return 47.4 33.6 35 -100.00% 4.17% 47.4 33.6 45 -67.57% 33.93% 47.4 33.6 55 102.70% 63.69% 47.4 33.6 65 237.84% 93.45% 47.4 33.6 75 372.97% 123.21% 47.4 33.6 85 508.11% 152.98% 47.4 33.6 95 643.24% 182.74%