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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: miklosh who wrote (34377)	10/22/1998 4:50:00 PM
From: yard_man	Read Replies (1) \| Respond to of 132070

Can I make a comment miklosh? Re taxes and selling: If it looks most profitable to sell now, sell now. Better to have a profit and give some to the taxman than to not have a profit and not give anything to the tax man. Taxes and their implications are best considered before you start spreading your money around to various investments. I'd defer to almost anyone else on AMAT.

To: miklosh who wrote (34377)	10/22/1998 8:39:00 PM
From: Thomas M.	Read Replies (1) \| Respond to of 132070

cboe.com Poke around the CBOE site, and you will find lots of info on options. Tom

To: miklosh who wrote (34377)	10/23/1998 11:46:00 AM
From: Knighty Tin	Read Replies (1) \| Respond to of 132070

Mik, The Amex is the most popular exchange for trading Xyln options and the other two symbols refer to the less important versions sold on the Pacific and CBOE. When they find a mania stock, the exchanges tend to double and triple list them. The Amex wins nearly all of those battles as the specialist system is better than the market maker system. I think Amat is overpriced, and even they concede that there is a sea change in the business. However, it is a good co. in a lousy business. First, I would consider taking the profit. You will probably never have cap gains rates any lower than these levels. Secondly, if you have too many gains this year, you might short against the box, short AMat but don't sell your long position, so you end up, net, net with no risk but some dead cash until Jan 2. The negative is the dead cash and the quadruple commissions. Call premiums are extremely high, so I would consider selling some. I don't think the premiums are large enough to protect you from the eps loss I expect this quarter or next, but it beats nothing. I would avoid the short straddles like the plague. You are doubling your risk on a highly risky stock. A high risk, low return strategy that I loathe. If you like it, buy the stock or calls. If you don't like it, sell or buy puts. But selling straddles looks good only until you get burned. And, if you don't get burned this time, you will eventually. A popular but awful strategy. Another alternative, if you love the stock long term, is to buy some out of the money puts, 25s or so, for crash insurance, but that is just like selling the stock and buying in the money calls. You have to like the stock. MB