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

To: Steve Byers who wrote (10239)	11/2/1997 9:38:00 AM
From: Ramon V. Frias	Read Replies (1) \| Respond to of 70976

To All: When investing in LEAPs its important to understand the somewhat illiquid nature of these options. If the stock is in a freefall, as semis sometimes are, they won't start trading LEAPs some times for a 1/2 hour. We all know how much damage these stocks can take in a half hour. Therefore, stops don't work very well with LEAPs. I recommend taking some profit as the stock starts to rise, lets say every 15 points, and buying some shortterm out of the money puts that might protect you for the 3 months at time even if you think the stock is going higher. This way you are protected against a shorterm meltdown like the one we just experienced 40% in 2 1/2 weeks. If you still believe that the cycle will continue than there's no need to need to buy LEAP puts that cost alot more money when you're seeking to protect the shortterm not the longterm. Good luck to all, Ray