Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Charles R who wrote (88068)	1/19/2000 2:50:00 PM
From: milan0	Read Replies (1) of 1576622

Chuck <Re open interests > - Very high call to put ratio - so there are a lot of folks who have written AMD options (covered or naked) I calculated the call to put ratio and it is almost 3:1. It seemed high to me until I calculated the same ratio for Intel: 3.1:1 which is even higher than for AMD. Also, I am not sure there are many folks that have written AMD calls. When I want to buy call options and nobody is willing to sell these calls, I believe the market maker himself writes the options. However, to protect himself, the market maker immediately buys common shares in equivalent amount to the written options. Conversely, if I resell my option and the market maker cancels the open interest, he will resell his common shares. That, in itself, could be a drag on the market toward the so called max pain point much discussed on the Intel thread. - Very little interest in options beyond April. I am personally surprised that LEAPs have not seen much growth. Right! I didn't catch that before. For Intel, the ratio of leaps to total options is much higher. Could that mean AMD investors think the big gap is about to happen very soon?! Mike

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