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

To: Tito L. Nisperos Jr. who wrote (10877)	11/12/1997 9:48:00 PM
From: Big Bucks	Read Replies (1) \| Respond to of 70976

Tito, Thanks for the LEAP strategy. What is your recommendation currently? Are you positioning yourself to ride the wave up again? TB should do well short term with his strategy on a price run up and quick cash out. What do you consider a bargain price for leaps and at what target price will you "cash out". ----------- Tito, I just read your strategy again and I think I understand, I misread it to be Jan 99 leaps but you modified it to Jan 98 leaps, so you are betting the stock will be at least at $30 by Jan 98. I expect you will sell if it bounces to $31-32 before earnings, is this correct? If not at what price will you sell or roll it into Jan 2000 leaps? Best Regards, BB

To: Tito L. Nisperos Jr. who wrote (10877)	11/12/1997 10:26:00 PM
From: Dom Sartorio	Read Replies (1) \| Respond to of 70976

Tito, just remember that the power of LEAPS also goes the other way.. Like any other option, the percentage gained or lost is always greater than the percentage change in underlying stock price. Last week I bought some JAN99 leaps when AMAT was around 35, now there's not much left to my investment. Of course I'm still confident that these will still be a good investment, but I say that only because I'm comfortable with the risk... there's a chance, however small, that LEAPS can become worthless, all because the stock doesn't move anywhere - it doesn't even have to go down much. So be careful about touting LEAPS especially to inexperienced investors w/o noting the downside risk. DOM