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

To: Lane who wrote (13189)	12/13/1997 12:45:00 AM
From: Lee Penick	Respond to of 70976

Lane, If they expire in january, the time value, if their is much left with the put in the money, should be dacaying rapidly towards the end. To roll forward now might well not let you enjoy this decay of time value. But realize I am saying this theoretically, since I don't know which Puts you are talking about for sure. So I'm guessing you wouldn't want to roll forward till much closer to expiration. Looking at the chart today, I think you will maximize your premiums if you roll forward month to month. You just don't get as much time premium per month by selling the multi month options. So, unless the commissions override the increase in time premium, month to month seems better. Please think this over and lets talk again with more specifics. With the stock getting this low I like the leaps, but don't currently have the cash to do it....less I get gutsy and sell the stock for a loss to buy the leaps. Probably the smart thing, but hard to sell for a loss. Just my opion, but hope it helps. Lee

To: Lane who wrote (13189)	12/17/1997 10:33:00 PM
From: Lee Penick	Read Replies (1) \| Respond to of 70976

Lane, Off topic, FYI, The roll forward to the Jan 35 Puts didn't work. I couldn't get a credit of 3/4 so I tried 1/2. Couldn't get that either. Decided to go for the April 35s and recieved a credit of 1 3/4. This transaction has not gone as I hoped, dropping $10 the first week I sold the puts, but when the stock returns to 35 eventually, I will have made about 3K as it now stands. All my loses should be so pleasant. I also have Jan 25 Puts and may well let myself get put if the price goes into that range again. So what are you doing? Lee Does anyone here subscribe to Lawrence Mcmillan's options newsleter???