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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Cary Salsberg who wrote (5004)	8/21/2002 11:57:46 PM
From: Gottfried	Read Replies (1) \| Respond to of 95383

Good idea, Cary. I'll print your message and reply after some study - probably this weekend. Maybe Jerome can tell us again how likely it is a stock will be called away in mid-term. I'd like to know because close October calls [I know you said 6 months] might be in the money for September and then out of the money if an October debacle occurs around expiration. Gottfried

To: Cary Salsberg who wrote (5004)	9/2/2002 12:29:53 PM
From: Gottfried	Read Replies (1) \| Respond to of 95383

Cary, you said >I want to sell way out of the money, ~6 month covered calls when there is a good return and little likelihood that my shares will be called away.< I have difficulty with the little likelihood part. TA can help some, but drastic price moves have been unexpected. Another approach would be to write/buy calls with smaller returns more often. There's still risk, but it limited and known in advance. Please refer to this link for options prices. finance.yahoo.com Sell Oct $15.00 calls for $0.95 Buy Oct $16.25 calls for $0.55 Profit is 40 cents and maximum risk is [$1.25 - $ 0.40] if AMAT goes above $16.25 PS: interactivebrokers.com takes $1 per contact as commission. Gottfried