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Politics : Formerly About Advanced Micro Devices

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To: Bill Jackson who wrote (83405)12/17/1999 12:29:00 PM
From: niceguy767  Read Replies (2) of 1573027
 
Hi Bill:

Options wording is tricky. You can either buy or you can sell both puts and calls.
When one buys a put, one is purchasing the right to put stock to another party at the exerise price in this case, $25. Buying a put is a bearish strategy.
When one sells a put, one is accepting the offer to have stock put to oneself at the exercise price, once again in this case $25. It is a bullish strategy as one is betting the price won't fall below $25, say to $20, in which case on expiry date, one would be forced to pay $25 for a $20 stock.

Fudd's selling AMD puts is a bullish strategy!!! Peculiar behaviour, no??? given his relentless harping about his perception of inferior "here-and-now" Athlon performance
relative to the fictitios "some-time-in-the-future" performance of the PweeIII!
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