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

To: Big Bucks who wrote (10181)	10/31/1997 10:46:00 PM
From: akidron	Read Replies (2) \| Respond to of 70976

I don't have targets in exactly that way. If there is mommentum before the earnings, given the fact that there is little doubt that there is fear ectched into the price of the stock, I would probably wait and sell on the Friday (21st). If the movement is like we have seen this week - unenthusiastic. I will sell the stock I bought this week at 31 at 35-36 and cover the earnings by buying a cheap out-of the-money option. If the movement next week is down. I will simply double up on all my positions and perhaps buy the 35's or even the 32.5's. The point is - IMHO - to leave yourself with cash so that you don't have to be right first time, and in option trading to be prepared to let out-of-the money options expire, because fear will kill the upside of a big + earnings surprise. Incidently I never cover stock profit with putts, it just adds to your cost in the long run

To: Big Bucks who wrote (10181)	11/1/1997 12:17:00 AM
From: Paul V.	Read Replies (1) \| Respond to of 70976

Big Buck, You asked the right and most the difficult question? How long do you hold and when do you fold them. The solution is to get into the stock at its lows. Just think of those who bought AMAT at 21.625 last year. If you were them and you have held for the duration with a post split of $10.81 cost you would still be up 186.8% with more to go or would you have sold? We know what happens when you try to time AMAT. Lester, I am sure I know what you would and have done. A tough decision. Paul V.