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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Jerry Olson who wrote (31093)	12/12/1997 12:24:00 PM
From: j g cordes	Respond to of 58727

Jerry There are few genuine articles left in this world. Not so long ago there seems to have been a population boom of 'marketing' types. Rip off the original idea and mass produce it before the glow of its originality fades. They brought into vogue the phrase "Why reinvent the wheel?" I don't know if this applies to handbags, but I'll assume that it does, as most everything in this world has been reconsumerized for the masses... one of my favorite ad lines is "...exclusively at K-Mart." Did you catch an interview last night... Lou Dobbs guest said 'Japan is printing 1% more money PER DAY, to insure system liquidity.' I think I'll buy paper stocks! Jim

To: Jerry Olson who wrote (31093)	12/12/1997 9:55:00 PM
From: HoodBuilder	Read Replies (1) \| Respond to of 58727

Jerry, I've spent the last hour evaluating the AMAT Puts and Calls on the CBOE Site. I think I've set up the ultimate trade and I want your feedback. Call me over the weekend or I'll talk to you Monday AM. Here's a teaser. . . Buy AMAT @ 26.50 (assume Monday's open) Write July 35 for 2.875 Buy Jan 25 Put for $2.00 I figure by Mid Jan the bad news will be on the table and if AMAT's gonna take a hit it will be before Jan Opex. If stock moves below $25 you're fully hedged if it moves north you are stuck with a $9.00 profit ceiling in July if you don't roll up and out. This seems better than the $50,000 I lost on KLIC options. I'm gonna sleep on this one but 4K shares don't seem too bad. BTW, if you want more safety you can roll out the covereds and buy some more Puts all the while keeping your profit ceiling at $9.00+/- Please tell me what is wrong wih this picture. Comments from other Option Experts is welcome.