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To: MrGreenJeans who wrote (1840)	10/27/1998 10:15:00 AM
From: Jeffrey D	Read Replies (1) \| Respond to of 15132

MrG:<<Strikes out of the Money so you sell your strike out of the money far enough that the chances of the stock reaching that price are pretty slim and now you get a return on your money instead of it just sitting there Strikes far out of the money usually yield low premiums for the seller. The risk reward on this type of transaction is not attractive to me. If you are going to get your stock called away you may as well be compensated for it by obtaining a greater premium otherwise you just earn nickels and dimes.>> Mr.G, I'm glad this topic came up as I have never entered the options market but activity in it last Friday caught my attention. I am long on AMAT and last Friday, the 7th most active call option was on AMAT. The stock closed that day at 33 15/16. There were 3538 contracts for AMAT January calls with a strike price of 42 1/2. The premium was 1. Obviously, the strike price is far out of the money and I was wondering if you, or others, could venture a guess as to why that option would be so popular? Thanks, Jeff