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

To: niceguy767 who wrote (83526)	12/18/1999 2:32:00 AM
From: Petz	Respond to of 1573214

niceguy, re:< If one is bearish as fudd certainly presents himself, then write calls and limit your downside risk!> Yes, for example, with RMBS at 70, if you are sure its not going over 80, sell the 80 calls and buy the 90 calls to limit your risk to 10 points. (just an example) Elmer doesn't want to admit it, but he knows that AMD will never stay below book value for very long, even if there were process problems again, because it would be bought out eventually. So he's bearish, but only to a point. I like what one poster wrote: don't write puts on a stock that you are not willing to own. And I might add, don't write puts on a stock if you don't gave the capital to own the stock. (Your broker will only require 25%) Petz