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

To: William L. Oppenheim who wrote (13322)	12/15/1997 12:02:00 AM
From: Lee Penick	Read Replies (1) \| Respond to of 70976

Willian, If you are buying, your statement is correct. If you are selling, I don't quite agree. If buying, I am buying a wasting asset, don't like that. If selling, I am selling a wasting asset, like that very much. If selling and wrong, i.e. gonna get put or called, can roll it over, hopefully for a credit cause I'm selling more time value, and hope to not get called/go into the money this time. Seems much more forgiving to me, and I like that cause my timing calls are well below 50%. Leaps are nicer with respect to the wasting asset concept. You have such a long time for the movement to occur...and the majority of the time premium vanishes toward the end, you can roll forward before the real wasting happens. Of course you pay a pretty penny for a long term option, but if the price is really beaten down, and you believe it will rise like a phoenix, may be a great investment. On the other hand, if a person is retired and values steady income more than growth, selling a leaps call may be appropriate. Selling your right to the stock for todays market price can earn a person about 40%. Beats a bank account. Tis a very interesting game/investment. Actually I think options get a bad rap cause most people gamble with them. But they have strategic value to an investor too, for producing income, protecting your position, etc. good luck, Lee