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: Elmer who wrote (83529)	12/18/1999 9:52:00 AM
From: niceguy767	Respond to of 1572758

Hey Fudd: Just want to recap...My only point is that if I were a "big bear" on a stock that has traded between $17 and $30 in the past two months and is currently trading near $30...I don't think I would position myself by writing puts and thereby not only miss the opportunity of significant financial reward should the stock return to $17 but, in fact, suffer a significant financial loss should my "big bear" outlook turn out to be realized by a retreat to the $17 level. (You were bearish at $17 weren't you, Fudd? so you must be really bearish at $29?). I would, if I were really bearish at $29, consider writing calls though! Actually given this scenario, I would buy puts!) Either way would protect me from suffering a significant financial penalty should my "big bear" outlook be rewarded by a retreat from $29 to $17. Fudd...stop the squirming...admit(to yourself in silence at least)that writing puts at $29 as a "big bear" strategy, is very dangerous, foolish even, as it is a significant money loser if the "big bear" arrives and the stock tumbles back to $17... In 25 years of dealing in options and with many options players, you are the first "big bear" who I have ever heard propose that writing puts is a sane "big bear" investment strategy...Even more difficult to accept is that you are proposing such a "big bear" strategy at $29 when you were a "big bear" at $17... It's just not that easy for me to let that one go by unchallenged! Your logic resembles too much that of a masochist for my blind acceptance!