Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Kevin K. Spurway who wrote (68891)	8/15/1999 1:33:00 PM
From: Elmer	Read Replies (1) of 1572948

Re: "I know exactly what you do! You sell puts, but someone has to buy them, right? You called these people suckers--but they are the ones gambling AMD will go DOWN." The ones buying the puts aren't the suckers in my mind. It's the ones who buy the equities expecting a huge runup. They hold the price up, thereby preventing an assignment. For this strategy to work, all I need is for AMD to stay in a range. That's exactly what it's done. Or go up. That's what AMD fans expect so they buy on dips establishing a support level. If there is a prolonged dip, I get assigned at a discount price and turn around and sell covered calls. The CC premium only needs to cover the margin interest but would probably bring in a profit itself. I have yet to be assigned on any of my puts, thanks to the fact that AMD is stuck in a trading range. EP

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