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

To: Jacob Snyder who wrote (61587)	3/6/2002 11:21:45 PM
From: Jan Crawley	Respond to of 70976

Hi Jacob, You are well equipped to handle your Amat portfolio! My input was just an "input". You always share with great care and sincerity! I am sorta sleepy right now, so maybe I can do better tomorrow. Btw, Alaska? I bet it's really beautful but really COLD now.

To: Jacob Snyder who wrote (61587)	3/7/2002 9:46:28 AM
From: Berk	Read Replies (1) \| Respond to of 70976

Jacob, in looking at your post it looks like you are ignoring the value of the option versus the stock or it's delta. An at the money option might have a delta of .4 which means that selling it one to one against stock would translate to a hedge on less than one half the position. In addition as the stock declines the delta declines as well. So too as the option's life becomes shorter. If that is what you analyzed with TXN, your results would come as no surprise.