Gopher, I don't think there's any scam...
Given the open interest in July calls near or above the money (on the order of 40K), that's 4 MILLION shares worth of exiting going on today and tomorrow, especially as the stock starts down.
Remember that Needham (who owns what, 4% of AMD) placed a July collar around his shares, with puts bought around 80 and calls sold at 90 and 95. That's a hell of a lot of downward pressure.
Had I fully appreciated the volume of open calls out there, I would have closed out ALL of my July position before the earnings bell, instead of retaining half of it until this dismal morning.
Folks taking a short term ride from 75ish to 90 could also be to blame.
At any rate, it is nice to see that BofA analyst going beyond targets and recommendations, and actually calling today's dip "inappropriate".
I think next week may bring better fortunes. (*That's* getting to be a bit of an old statement, huh? )
Sunday and Monday (in Dresden) we have the KryoTech reseller meeting goin on with AMD's close participation. Let's hope they announce their 1.4GHz SuperG.
Wednesday should bring an announcement from Acer/ALi on their corvette chipset.
And (are you listening, AMD?) an announcement of Duron systems from a major OEM (I have a favorite candidate, but don't tell Scumbria) would do wonders next week, as well.
You win some, you lose some. The past 2 quarters have exhibited nice behavior in the month following earnings, once the initial few days of selloff passes.
Doug |
