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

To: Amir Desai who wrote (13549)	12/18/1997 12:03:00 AM
From: Roy S. Newman II	Respond to of 70976

Amir, Effective strategy, expecially in this market. You protect yourself on the downside and take profits ahead of time. Also if amat goes down further, you can roll down on the leaps to capture more premium. If you have more funds, Look at Compaq. Got 8 on the calls today at the open for the 60 april 98's. Long the stock at 58. Best of Luck. Roy

To: Amir Desai who wrote (13549)	12/18/1997 1:42:00 AM
From: ratan lal	Read Replies (1) \| Respond to of 70976

Amir Tell em where I am confused. You have sold CC on AMAT Jan 99 $35's for $5.125. << My guess is that AMAT goess well above $45 by the end of 3rd qtr in 98 >> Ok so now AMAT is at 45. The $35 CC is now worth at least $10+premium for 3 months time value. Would'nt you have been better off keeping the stock and NOW selling the $45 CC for its premium?? << and that the premium in the LEAP by then will evaporate to $2 to $3. I probab;y end up buying it back. >> AMAT has already gon up $10 from your Strike price. SO you can buy it back for $10+time value ($3??) = $13. You would have been better off not selling the CC. ratan