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Politics : Formerly About Advanced Micro Devices
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To: chic_hearne who wrote (107759)4/25/2000 2:19:00 PM
From: Petz  Read Replies (2) of 1576107
 
chic, don't figure on buying puts to protect your 200% long position in AMD. When you buy puts on the AMD, the "clock" for one year of holding period stops or resets to zero (not sure which). I would sell May 100 calls if you are nervous about being at 50% equity.

An even better alternative might be to buy a few puts on another semi stock which is overvalued.

Actually, most brokers allow your equity to drop to 30% before they want more money. If there was a big semi industry correction and AMD dropped 10% and you were now at 40% equity, chances are you could sell the puts for a profit and regain your 50% equity position or more.

Petz
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