Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bill Jackson who wrote (83405)	12/17/1999 12:29:00 PM
From: niceguy767	Read Replies (2) \| Respond to of 1572973

Hi Bill: Options wording is tricky. You can either buy or you can sell both puts and calls. When one buys a put, one is purchasing the right to put stock to another party at the exerise price in this case, $25. Buying a put is a bearish strategy. When one sells a put, one is accepting the offer to have stock put to oneself at the exercise price, once again in this case $25. It is a bullish strategy as one is betting the price won't fall below $25, say to $20, in which case on expiry date, one would be forced to pay $25 for a $20 stock. Fudd's selling AMD puts is a bullish strategy!!! Peculiar behaviour, no??? given his relentless harping about his perception of inferior "here-and-now" Athlon performance relative to the fictitios "some-time-in-the-future" performance of the PweeIII!

To: Bill Jackson who wrote (83405)	12/17/1999 12:57:00 PM
From: Goutam	Read Replies (2) \| Respond to of 1572973

Bill, Elmer sold AMD Jan $25 puts because he strongly feels that AMD will not go down to $25, so he can pocket the premium paid by some loser (most probably from Intel investors camp). One sells puts on a given stock if he/she is bullish on that stock. However, Elmer posts his trades to indicate as if he is taking advantage of AMD stock holders that keeping the stock price high enabling him to profit by selling puts. On the contrary, he is pocketing money from the poor slobs that are buying these puts - investors that still don't see the chances of AMD success and continue to live in the past. Elmer's logic is contrived and most of the posters on this board (including Elmer) know that. Regards, Goutama