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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 203.14-0.8%Jan 9 9:30 AM EST

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To: eplace who wrote (80525)5/23/2002 2:37:03 AM
From: bacchus_iiRead Replies (1) of 275872
 
Elmer is alternatively bullish (selling put) than bearish (selling CC if he had been exercise until exercise again). He make good money by selling prime, but the risk is when big move occur on the wrong side of this flip-flop (short put than short call). When he is short put, on a big down move, he may lost big money but less than those who are long shares. On big up move while he is short CC he make some money but lose a big opportunity and if the big move is down, he lose too much on the share.

It's a good strategy for a side-way market but if it last too long the prime reduce a lot and the strategy get more risky.

Gottfried
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