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

To: niceguy767 who wrote (83475)	12/17/1999 4:45:00 PM
From: Elmer	Read Replies (2) \| Respond to of 1572802

Re: "ANY AMD naysayer who utilizes bullish AMD strategies by writing puts as opposed to a bearish strategy of buying puts, a strategy that most accurately reflects his/her negativity on this thread...speaks from both sides of the mouth..." It's just killing you to see me make money writing puts on AMD even when I EXPECT it to go down. The fact that you are an unsophisticated investor and can't understand the subtlies of option writing is your loss, not mine. You could be learning something here but instead you waste your time arguing a point you don't fully grasp. No wonder you're so bullish on AMD. EP

To: niceguy767 who wrote (83475)	12/17/1999 6:44:00 PM
From: Petz	Read Replies (2) \| Respond to of 1572802

niceguy, I have to agree more with Elmer on this one. He can still make a profit if AMD goes down, but not if it goes down a lot. If AMD goes from 29 to 100 in the next year, Elmer will only profit on about 18 points of that move ($1.50 premium 12 times). But if it goes from 29 to 20 in a year, and never drops by for than 20% in a month, he'll still profit by 18 points. If he bought puts each month during a year in which AMD dropped from 29 to 20, he would probably lose most of his $18 spent on puts. Having said this, if I really thought a stock was overvalued, I would buy put spreads or sell naked calls, not sell puts. Petz