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Politics : Formerly About Advanced Micro Devices
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To: Charles R who wrote (117062)6/22/2000 12:06:00 AM
From: xun  Read Replies (1) of 1579844
 
Chuck, RE<A friendly tip>

When did you become an options jockey:^)

Seriously, as the AMD options premiums are sky high, selling near/at/in the money puts is actually a safe and VERY profitable way to use margin power without actually incurring margin debt. Currently, I wrote July 90 at 7 1/4, Oct 85 at 15 1/2 and Oct 90 at 15 7/8.

For example, I wrote July 90 puts and used premium to buy July 90 calls two days ago. I sold those July calls today for a 25% return while still sitting on those puts. If the stock comes down, I'll buy those July 90 calls again. Otherwise, I just wait for July expiration.

Thanks to a Kash's tip, I did 1:3 credit spread when I sold Jan'03 120 calls at 30 1/2 and bought Jan'01 120 calls at 9 3/4 last week. They are doing very well now.

It's really hard for me to buy more AMD options using mrgin debt now.

Just my $.02

panic
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