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

To: Proud_Infidel who wrote (985)	5/29/2002 8:47:29 PM
From: BWAC	Respond to of 25522

Write calls on your position for the current month at a near strike price. Buy calls a strike price higher. Or theoretically : Collect $1.25 for the first covered call/buy strike higher attempt. (hope) They all expire. You're $1.25 ahead. Repeat the same sell/buy strike higher thing for next month and collect a net $1.25. (Two Months $2.50 premium.) After you set up the second month trades, your risk of missing any upside is gone. All you have to do is decide how to proceed if AMAT goes higher. And how to proceed if the price closes right between your strike prices.

To: Proud_Infidel who wrote (985)	5/29/2002 8:56:31 PM
From: Gottfried	Respond to of 25522

Brian, >I know that once I write a call, the stock will take off. Don't ask me how I know this, I just do:-) < You're probably right.<G> I only do it in my trading accounts, not with my core AMAT holding. Gottfried