Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: AK2004 who wrote (4961)	1/31/1997 10:52:00 PM
From: Martin Atkinson-Barr	of 1576593

I looked at Feb & Mar 40s. They were something like $0.75 & $1 1/4 bid resp. By the time you factored in commissions plus the cost of the puts, plus the need to stay covered (tying up cash) it didn't look too promising. I would have written a few thousand so the take maximum was not that great. I could have done a Black-Scholes on it - I have a shareware Excel spreadsheet that does it well - but given the volatility is high and likely to get higher if the market goes twitchy plus if the dollar starts to drop then the risk-free rate of return could jump. That's my analysis of it anyway, right or wrong. BTW my mention of the PhD in an earlier post caused something of a hornet's nest. Sorry about that. I wasn't boasting. You have to read the post I was replying to. I should have clipped the relevant part to make that clear and put a <g> after it. But if you're interested you can take a look at: helico.com I'm really happy about this paper and it's helped a lot of people. Anyone out there with halitosis?

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