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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Elroy Jetson who wrote (11034)	12/5/1997 6:31:00 AM
From: TideGlider	Read Replies (2) \| Respond to of 25960

Very true Elroy.. It would be more balanced if options were only sold when the corresponding amount of the underlying equity has been purchased. Bruce

To: Elroy Jetson who wrote (11034)	12/5/1997 8:30:00 AM
From: aknahow	Read Replies (1) \| Respond to of 25960

Elroy, the discussion on options centered not on individuals using options but as a tool for a corporation. Would you like to see CYMI buy back 1 million shares? If so it is very difficult to understand why one would oppose them being paid to do so by selling puts until the target was reached. Once this is accepted and assuming all legal requirments were met being able to sell calls at the same time at higher prices might also be of benefit to CYMI. There are many threads relative to obtions for individuals. They can however be used as a tool for corporate finance to enable a corporation do do what it needs to do anyway in the area of stock buybacks and new financing. I have been watching CYMI and if I decided to take a position I will try to do it by selling puts, or buyng the stock and selling calls, which is the same from a risk point of view. I would do this because I am uncertain of the direction of the stock over the short term. If however CYMI went straight back up I would end up not owing it. But the main point is not what an individual can do but how a corporation can use these tools. I would not buy stock in any company where I knew the management had decided to not even consider the use of options. To me it would be an indication management lacked financial skills. Most of the time one will never know whatthey think about the subject. Legal cost and regulatory red tape can be valid reasons for not implementing use of options by a corporate finance department.