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

To: Big Bucks who wrote (14835)	1/19/1998 12:10:00 AM
From: Steve Rolfe	Respond to of 70976

BB, If the stock goes to 37, I doubt I will have the patience to not sell the option. My avg. cost of 5 1/2 corresponds to AMAT around 28 and change. My gain would be about 8(call worth about 13 1/2 @ 37 depending on when it hits 37), but your numbers are close. These April calls seem to have the most reasonable premium (right now about 1 1/2). I recently read a post from Cramer and he suggested in this situation to sell enough to cover your initial cost and then play for free. In my situation I could do this since my gain would be greater than my cost. I doubt I will let these options get anywhere near expiration. I cannot tolerate that kind of risk. I feel like if really bad news comes out of ASIA and AMAT drops to 22/23 as some have suggested, it will be back to 30 before April exp. Steve