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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Mani1 who wrote (76007)	10/19/1999 2:29:00 AM
From: Paul Engel	Read Replies (1) \| Respond to of 1573627

Mani - re: "That is paper loss. How is that any different than my paper loss in AMD from $22?" Elmer was discussing selling AMD and DELL PUT options - which EXPIRE on the 3'rd Friday of next month. So it all boils down to the specific stock prices on THAT DAY. Paul

To: Mani1 who wrote (76007)	10/19/1999 11:04:00 AM
From: Elmer	Read Replies (2) \| Respond to of 1573627

Re: "The fact of the matter is that Elmer can get a lot more premium for his covered calls (is that the right term?) tomorrow. In other words, if he changes his mind and no longer wants the liability of buying the stock, he has to spend more than what he got to cancel the deal. That is paper loss. How is that any different than my paper loss in AMD from $22?" The topic was naked PUTs. It cost me no cash out of pocket to write those PUTs. In fact it put cash IN my pocket. They evaporate over time and even if they are below the strike price, assignment rarely takes place before the expiration date. If you want to call it a paper loss then I won't argue with you but I don't look at it that way. The 3rd Friday of the expiration month is when the rubber meets the road. EP