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

To: Goutam who wrote (84512)	12/31/1999 4:11:00 PM
From: tejek	Respond to of 1573377

Coming to think of it, the premium on those options wasn't that high two or three days ago when AMD was at 25 7/8. It could also be that some speculator(s) bought those calls by offering little bit higher price. What do you think? Ted, any comments? Goutama, I still do not fully understand the rational or rather the mechanics/dynamics behind why stocks form certain formations at certain times. Having said that, AMD has been putting together what's called a hanging flag (don't let the name put you off) on low volume and is in the final stages of that process.....meaning that next week we should see a gap up to a new trading range, probably 33 to 35. Low volume coupled with small intraday trading ranges usually signal that holders of the stock see the current price as a good one and don't want to sell, which increases demand pressures and in turn, the price. That's why I think you are seeing the premium on options going up. I think after the gap up we will see a 'forced march' to earnings where the stock moves up almost everyday like it did about a month ago. Should be pretty interesting. ted BTW those AMD longs who are holding Intel...the stock continues to have problems getting thru the 84-85 area; that area is really critical and presents a lot of resistance for Intel. If it can't get through it, the stock will probably drop to the 60-70 area....I think the extent of the drop will depend a great deal on the quality of its earnings report.