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

To: Proud_Infidel who wrote (17221)	1/17/2006 9:41:08 AM
From: Jerome	Read Replies (2) \| Respond to of 25522

Trading AMAT.... (and other selected Tech's) Regardless of one's opinion about AMAT's immediate future, the object is to buy AMAT shares and report a taxable gain in any given year. The following has worked for me since AMAT was at 17/ per share. Buy AMAT shares on the third or fourth consecutive down day, some where near the close of trading. Wait a day or two and then write a covered call on any day where the stock rises at least 3% on a given day. The other alternative would be to close out the position with a 5 to 7% gain. We are in a tech rally, but the rallies are not sustainable because of oil prices spiking unexpectedly. Where as in the past it was possible to wait for a significant stock price rally and then sell...now its all about small gains 4 to 6 % and short term gains. Some luck is involved in all of this, but it has worked well for me for the past six months. Its not very scientific but beats the hell out of watching money market funds to accumulate wealth. JMO....Jerome