Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 207.67

+2.2%

Jan 12 3:59 PM EST

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To: Epinephrine who wrote (37894)	4/30/2001 5:29:13 PM
From: redbird	Read Replies (1) of 275872

Sell 100 Jan 2003 $30 Puts (now $9.20) and buy back 100 Jan 2003 $40 Calls (now about $9.00). Your main position is freed up by 10000 shares. The remaining 10000 shares cover your puts down to $15 (Total loss) and the $40 calls above $40 (profit cap, but good profit). If you believe AMD is even slightly solid, the puts should never be exercised. No one wants to waste the time value until 2003, so AMD should have enough time to get and stay above 30. If they scare you, buy them back cheep when AMD hits $40 (you have 1 1/2 year to hit the price). The Calls should be the problem. You may want to sell part of your freed stock to buy back the calls. Wait a week for a price drop below $30 and then take the hit. Of course, if you think $40 is the top end, getting $40 plus the call money is not too bad. I am not a stock advisor, but I play one on TV. Redbird

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