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

To: Tito L. Nisperos Jr. who wrote (11351)	11/18/1997 9:36:00 PM
From: BLong	Read Replies (1) \| Respond to of 70976

I have never tried leaps, but am very interested in the strategy. I assume you are talking about "leap calls" as a long term alternative to buying stock now, and "leap puts" as an insurance policy for stock already purchased. In the case of AMAT, at it's current low, wouldn't most long term investers be more interested in leap calls? Could you give us some examples of the premium asked for AMAT leap calls that are available, and your opinion of which is the best deal? My understanding is that 3 year leaps are quite expensive (about 1/3 the stock price). I also understand that individuals can write leaps. A friend of mine told me that he has made money writing leap calls on INTC with the strike price slightly out-of-the-money. The strike price is higher that what he originally paid for the stock, so he doesn't lose money if the option is executed (he gets the strike price plus premium),but most of the time the option is not executed before the cut-off period (in which case he collects premium plus gets to keep the stock). Of course he pays a commission to a broker for the service, but it doesn't sound too bad, except that it keeps your stock tied up for a long time.

To: Tito L. Nisperos Jr. who wrote (11351)	11/18/1997 9:56:00 PM
From: akidron	Read Replies (2) \| Respond to of 70976

**OF TOPIC* can u help me with Seagate leaps... I'm looking 12-18 months

To: Tito L. Nisperos Jr. who wrote (11351)	11/18/1997 11:34:00 PM
From: BOGEY MAN	Read Replies (1) \| Respond to of 70976

TITO - you have created MONSTERS (ha ha) i like the potential power of leaps and two weeks ago bot the J99 20 for $ 17 because i wanted more stock and didnt want to pony up the 30. i am curious if a year ago the out of the money leaps carried as much premium as they do now. today the J99 35 is 10 which is a 11 premium over todays 34 1/2 closing. AMAT EPS 10-97 1.35 10-98 2.13 with a 20% growth rate how high do we on this thread think this thing can go. what kind of PE does a stock like this warrant. what are your thoughts on financing the leap calls by selling leap puts i realize this is very aggressive but if want in co. long term whats the harm. besides i frequent vegas regularly and would just as soon risk it where i have a decent chance of upside instead of none. also looking at leaps on COMS which is priced same as AMAT leaps are comparable. COMS EPS 5-98 2.00 5-99 2.50 with growth rate of 30% for the industry. what are your thoughts - tried E-mail but didn't transmit TIA - frustrated golfer bogey man