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To: GST who wrote (18126)	4/19/1999 8:56:00 PM
From: Bob Howarth	Respond to of 25814

Turnaround Tuesday Tomorrow.

To: GST who wrote (18126)	4/19/1999 10:02:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 25814

Hi GST - What month and strike price are you considering? I sold some naked PUTs strike price $30 Jan 2000...two weeks ago. If we are beginning an up-trend on the semi cycle it should last 18 months. If earnings can accelerate for the next three quarters and average $0.35 - $0.45 per quarter, I think $2.15/year earnings estimate for FY2000 is quite achievable. Therefore IMO, at a 20-25 PE, the market will price LSI (forward looking) by Jan 2000 to a minimum of $43-$54...expecting a continuation of the positive earnings momentum. Rather than buying calls, I was planning on selling the Jan 2000 40 or 45 calls. The 45 calls are not open yet but the Jan 40 calls (LHXAH) got as high as $7 on our last run to $38. These would be covered calls based on stock I bought last October. If LSI can run back into the high $30's or low $40's based on a good earnings report, then I plan to sell the Jan 40 covered calls (LHXAH). Therefore, adding the premium from the naked Jan 30 Puts I already sold for $6.50 (these should expire worthless) with the Jan $40 covered call premium...I am looking to get about $8.00, my net LSI sale should be at $54.50 ($40 strike price + $8.00 call premium + $6.50 Put premium). As long as LSI stays above $15.50 it is a positive trade. Either side of the straddle can be covered and re-sold when there are big moves in the stock price...like today. Finally, the original stock purchased in October 1998 should be called away in January 2000 at $40 making the original investment a long term capital gain for tax purposes. Hopefully, I will be out of the stock BEFORE any significant downturn in the semiconductor cycle. That's my strategy...I prefer selling calls and puts over buying them. EKS