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

To: Jacob Snyder who wrote (54718)	10/27/2001 3:55:25 PM
From: kdavy	Read Replies (1) \| Respond to of 70976

ST trading: I agree that most money can be made with at the money short term options bought at the bottom of the range. My experience of 1995-1997 has made me a cautious person. I lost my shirt trading options. Now I am using options as a proxy for the stock. I will only buy options when I am willing to buy the stock. Sunw: I don't plan to hold the stock for a long time and I feel that over the long term this company has a questionable future and lots of competition, for the short term good profit can be made. I am buying Jan 2002 options not to miss a big rally. Since, sunw is close to bottom, I think it can be played to make profit for another 50-60% rise in stock price. Once it reaches 15-16 area I would not play this anymore. Also it is less volatile and option premium is much cheaper. Amat: It belongs to some of my favorite stocks. High beta, high options premium, and lots of upside potential over the long run (???). I also like mxim,lltc,nvls,altr,xlnx. These stocks have high beta and options premium. When I am ready to hold stocks for the long term, I will start writing covered calls to get extra money. But I feel, at the bottom or close to bottom is not the time to write covered calls. With this in mind, I am not comfortable buying short term options in these stocks because I could easily lose all of my money ( I would rather write covered calls to generate money). I feel reasonably comfortable to buy longer term options in a high beta stock because at least the time is on my side. (Remember, I would like to keep my losses to a minimum). If I buy leaps when stock drops 10-15% and then buy stocks after another drop of 15-20 percent, my chances of coming out ahead are much better. I don't mind holding leaps or stocks for a few months under todays environment. I would not buy short term options in these stocks. That will keep my blood pressure very high, and severely negate the benefits of yoga and meditation. Of course, I will lose money. I hope my ramblings make some sense. Motto: miminize losses and maximize gains kdavy

To: Jacob Snyder who wrote (54718)	10/29/2001 4:42:36 PM
From: kdavy	Read Replies (1) \| Respond to of 70976

ST Trading: Jacob, after Friday's selling I am mostly cash. After today's action, the prices are in my buying range. I will see what happens tomorrow morning and probably start buying some options in amat, nvls, mxim and lltc. If then amat goes below 32, mxim below 41, nvls below 30 and lltc below 35 then I will start accumulating stocks. Will not go on margin at these levels. But another 20% drop from these levels mentioned would be good for me to go on 50% margins.( we may not reach there). The action starts tomorrow ie options first and then stocks. Wish me luck. Kdavy