Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Eric K. who wrote (116296)	6/18/2000 8:16:00 PM
From: Elmer	of 1576159

Re: "A strategy of buying naked out-of-the-money calls would also not bump into any margin limits" "Buying naked calls"???? That's a new one. And buying calls certainly will effect margin if you're using margin to buy them. Re: "What is so conservative about a fixed upside, massive potential downside investment?" I don't believe the risk is that high. AMD has established credibility as a CPU supplier and with the worldwide demand for both CPUs and Flash, I see little chance of a major downside in the short term. Except for some leaps at low prices I write only one month out, giving myself little time exposure. I don't usually write them near the money so even a 10%+ drop in price isn't a threat and if threatened I can roll them out. With substantial margin I can write a lot of contracts. It's been working very nicely. I hope you can say the same. EP

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