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

To: Carl H. Gotsch who wrote (11125)	11/15/1997 12:29:00 PM
From: Tito L. Nisperos Jr.	Read Replies (2) \| Respond to of 70976

Carl, You are right, one in his enthusiasm may overlook the fact that LEAPs, like all Options if not handled right can make him poor. To be at minimal risk, one should buy little at first choosing slightly Out The Money like the 35 or 40 (with the stock lying at 32). If the stock goes down to 25, he averages down his cost by buying a little of a 30 or 35. Furthermore, he must be prepared to Roll-over the investments to Leaps that have additional 1-yr life in them timing the switch when the LEAPs have more time value left about 5 to 6 months or more before they expire, preferably from Apr to Aug, a time period when AMAT usually is at its highs... I agree, marriage is at risk also in times when investments are down. But, my wife seems to be resigned of the fact that I always have the ability to come back from any setback. She just wanted to correct what he thinks are my mistakes in investing---waiting too long to sell. She doesn't understand that, as I am happy when the stock is way up, I'm also happy when the stock is way down so as to have the opportunity to buy cheaper...I guess we have to take considerations of what the wife is telling us. Here's a woman who doesn't even know how to calcuculate PEs and have a hard time figuring percentages but knows when to buy and when to sell.