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

To: willcousa who wrote (54244)	10/17/2001 10:00:57 PM
From: BWAC	Read Replies (1) \| Respond to of 70976

<Other thoughts? > Why write the March 35 for 10%, when you could write the Nov 35 for 5%, then Dec 35 for 5% if necessary, and so on as time progresses? Assuming you think AMAT won't fall so far and fast that you need the extra % protection from the March calls?

To: willcousa who wrote (54244)	10/18/2001 1:44:38 AM
From: Jerome	Read Replies (2) \| Respond to of 70976

>>other thoughts<< Considering the nature of the market writing a covered call out to March is a less than brilliant idea. 1) You are tying up your stock for 5 months. If AMAT gets past its current range it will be expensive to undo. 2) A better plan would be to buy AMAT as close to 30 as possible ( 28 to 31) wait for strong recovery day and then write the 35's for the current month. A little chancy but you will pick up your 10% if called out. 3) Another possibility....on any given day look at the call premium attached to AMAT, NVLS, LRCX, LLTC, MXIM. These stocks tend to move as a group but not with any great precision. LRCX at 18.50 gives a decent premium for the 20's of the same month. 4) For what its worth...CSCO has some of the best call premium, followed by ORCL. Getting called out or not getting called out???who knows? But a callout is much better than a stock price collapse. Regards, Jerome