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


To: Alastair McIntosh who wrote (57448)12/14/2001 5:25:59 PM
From: Sampat Saraf  Read Replies (2) | Respond to of 70976
 
Thanks.

This same technique of calculating return per day can be applied for 'pure' stock positions also. If Cary's purchase price is 40 and target sell price after two years is 175 and Amat jumps to 125 in just 4-5 months, it may be better to close the position because the remaining return in AMAT may not be worth the risk.



To: Alastair McIntosh who wrote (57448)12/14/2001 6:49:16 PM
From: Sam Citron  Read Replies (1) | Respond to of 70976
 
I often do covered call plays and find that when the underlying stock spikes up before expiry it makes sense to close the position as the rate of additional return on holding to expiry is low and not without risk.

Do you simply close the position or do a roll-up?