Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 217.59

+1.1%

Dec 3 3:59 PM EST

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To: niceguy767 who wrote (1818)	7/21/2000 4:04:27 PM
From: Gopher Broke	Read Replies (1) of 275872

I, too would've thought volume would be greater than yesterday I think that the problem has been caused by the high prices of AMD July calls. The fund managers, needing only a reasonable return and not looking for the big gains that we are going for, could get a good return on invested capital by writing calls. A call that was $10 in the money would still yield a couple of percent for the writer, at the same time hedging their position and allowing them to reenter at a lower price if AMD dipped as it has and does not immediately gap up on Monday. So, if most of the big money has written calls against their positions then they will be disinclined to buy AMD up at this time. That leaves the field open for driving the price down with such low volumes. Heres hoping there will be a real scramble on Monday when they are free of their covered calls.

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