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Technology Stocks : Kulicke and Soffa -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (3296)	5/1/1999 9:35:00 AM
From: Jerome	Read Replies (1) \| Respond to of 5482

If the short term prospects are not great, I susupect that many would be investors are sitting on the sidelines. This being the case it could be worthwhile to write some covered calls at the 25 strike each month. The two periods of time that I would use are the day the book to bill is released and somewhere near the day earnings are released. Right now the May 25's look profitable with at limit of three. In writing covered calls I use only a one month horizon. The viewpoint on this sector changes about every three weeks. Despair to hope. Writing covered calls on tech stocks guarantees a profit every month. Even if a stock gets called away I just buy it back and write another covered call with a higher strike one month out. My average cost basis on KLIC is 26. By writing covered calls for the past year I have reduced that cost basis to l7. The best covered calls month to month are AMAT, KLIC, ETEC, NVLS, LRCX, and DELL. Near term for the next two months I see no reason why KLIC should trade above 30. The tech experts on these threads have been very good in pointing out industry trends, and company trends. Armed with that information covered call writing is a sensible way to add income or revenue while waiting for KLIC to get to the $45.00 to $50.00 range by the end of the year. These are just my opinions, and I hope they help someone turn a waiting proposition (KLIC) into a nicely profitable one. have a good week-end Jerome