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

To: Math Junkie who wrote (692)	1/9/2002 8:42:21 PM
From: Jerome	Read Replies (2) \| Respond to of 25522

A slick option plan for AMAT....better than selling out and waiting for a pullback.... The assumption here is that an investor owns 1000 shares of AMAT and has no idea where this crazy market is heading. AMAT closed at 46.68 today and I would write the Feb 50's (-ANQBJ)five contracts and take $1.85 for them and at the very same time write the April 55's for 2.25 x 2.40 also five contracts (-anqdk) On a sharp pullback I would unwind these positions or ride them out if the Nas stagnates at its current level. Use the call premium to buy additional shares of AMAT below 50. If by chance you are called out at 50 you can refill your hand and then write the 60's about 4 months out. If you do the math on this... call out or no call out prosperity is in your corner. Because of very weak earnings from AMAT a rise beyond these levels would represent maximum optimism.(a good time to sell) This is easier than short term trading and requires less monitoring. Regards, Jerome