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

To: Steve W. who wrote (10170)	10/31/1997 5:51:00 PM
From: roly	Respond to of 70976

Steve, I'd like to refer you to Tito, he has a lot of experience on Leaps and had suggested strategies . I haven't done any leap trading. Good luck. Roly

To: Steve W. who wrote (10170)	11/1/1997 11:41:00 AM
From: Tito L. Nisperos Jr.	Read Replies (2) \| Respond to of 70976

Steve, After you bought the LEAPs you can sell them as fast as your broker can figure out what is happening. You neither need to exercise them nor let them expire worthless. There are so many strategies to employ, the limit is your imagination. For example, as you see your 42K ballooned to 225K, you think AMAT is going to go down big:--- then you could sell your LEAP Calls, wait for the stock to correct then buy LEAPs again; or sell half of the LEAPs and with the proceeds buy LEAP Puts to balance things (your 225K will be maintained with just slight deterioration in value as the Calls and Puts decay with time--- whether the stock go north or south. If the stock should decline much and you think the next big move is up, then sell the Puts and buy additional Calls... AMAT declined 63% from summer 1995 to summer 1996; from this summer to a few days ago, the stock got a 45% correction. So we must always be on the look-out for times like these as an opportunity to play LEAPs with Calls as well as some Puts...