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

To: Tito L. Nisperos Jr. who wrote (24952)	10/6/1998 2:23:00 PM
From: marc henschke	Read Replies (1) \| Respond to of 70976

Jacob: On a positive note, you may be underestimating the returns that you will derive from your leaps. Having owned AMAT leaps extensively (and at times exclusively) over the past few years, I can tell you that my experience has been that so long as a significant amount of time remains before expiration, your leaps will increase in value in percentage terms at somewhere between 2.5 to 3 times the underlying stock. Accordingly, if AMAT were to reach $46 or so over the next 9 months, your leaps already will have tripled to $12 even before the big money dollar for dollar moves begin. As you will come to learn (sometimes with frustration and sometimes with exhilaration), the price movements in AMAT leaps often appear to be more art than science. You'll have days where the underlying stock goes up $3 per share and the leaps go down. On the other hand, some days the stock and the leaps will both go up $2 each, even though the leaps are worth only 25% of the stock price. Buckle up for a wild ride. If your timing proves to be astute, your leaps will turn out to be an outrageously profitable investment. My opinion is that you likely have made a damn good bet, although the 2002 leaps that will be released to the market next May seem to be an even bigger lock given the current timetable for the 300mm roll-out.

To: Tito L. Nisperos Jr. who wrote (24952)	10/7/1998 7:27:00 PM
From: Jacob Snyder	Read Replies (1) \| Respond to of 70976

tito, nice to hear from you: re: "after the night is over comes the day", and "isn't more than 2 years too cautious?" If 2002 LEAPs were available, I'd buy them instead. And, when the 2002s become available, if the stock is still below 40, I'll roll them over. I am 100% confident day will follow night, but not at all sure about the timing. Maybe that comes from living above the Arctic Circle, where the sun sets in mid-November, and doesn't come up again till late-January. If the 1996 pattern repeats, then a year of decline should signal the bottom. If. Let me repeat that: if. re: "I know you are a man who wants all risk reduced to a little or none at all" I'm using all of this year's savings, to buy far-out-of-the-money options, in one very volatile tech stock, in an industry with zero visibility, as the market tumbles and recession looms. Only the man who introduced me to AMAT LEAPs could call me risk-averse.