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Technology Stocks : Applied Materials No-Politics Thread (AMAT) -- Ignore unavailable to you. Want to Upgrade?

To: Math Junkie who wrote (314)	11/6/2001 8:59:48 PM
From: Jerome	Read Replies (2) \| Respond to of 25522

Just eight trading days left in this option period.Re:AMAT There are two distinct option strategies for covered calls. Strategy #1) On the trading day after options expire (Oct.22nd in this case) write the covered call at what you think in the appropriate strike and get the full advantage of the time value left till the next option expiration period. Strategy #2...Wait until the option period is half over to see how the month will play out. On Oct. 19th AMAT closed at 32.55 and On Oct 22nd (the first day of the new period) it closed at 34.77. I would have written cc at the 35 or the 37.50 strike. But strategy #2 would have worked out better this time . Today AMAT closed at 39.92 and the strikes that now are important are the Nov. 40's, 42.50's and the 45's. If the objective is to not get called out then use the 45 strike. The important thing is to do something, while the time is still worth something. Regards, Jerome