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

To: Charles R who wrote (88790)	1/21/2000 4:15:00 PM
From: Gopher Broke	Read Replies (2) \| Respond to of 1573364

The options were mostly cleared out yesterday. Look at the volumes in options today. Should not have affected the stock price. What is most weird is that Intel gained today while AMD lost. This discounts the "price war" theory for me, because I can see no way that AMD would be hurt more than Intel in a price war.

To: Charles R who wrote (88790)	1/21/2000 5:31:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1573364

Chuckles - Re: "Retrospectively, I am surprised that the options experts on this thread did not at least see the potential for downward pressure from the massive options position. " I guess everything looked real rosey - through their rose-coloured glasses ! Paul

To: Charles R who wrote (88790)	1/21/2000 6:18:00 PM
From: Goutam	Read Replies (1) \| Respond to of 1573364

Chuck, Retrospectively, I am surprised that the options experts on this thread did not at least see the potential for downward pressure from the massive options position Personally, I didn't expect the stock to go down in this fashion - especially after the stellar earnings report. I thought the stock would be valued at least at 24 PE based on Q4 earnings. I'm not an options expert, but I have been trading in AMD options heavily since the Athlon announcement. IMHO, the drop in the stock price in the last two days has not much to do with options. The open interest in options was equal to about 2M shares (I'm guessing here), and the total volume last two days was about 19M shares. I believe that most of the drop in the stock price was to do with the combination of big players profit taking, shorts and margin squeeze related selling. IMHO, it's the combination of all the above three scenarios happening simultaneously caused most of the price drop in this stock. This stock has been shorts favorite for a long time. Also because of continuous stream of good news in the last several months, lot of small investors must have ran up their margins to full limit - prior to as well as day after the earnings announcement. With regards to margin squeeze - it can be as potent as the short squeeze but in the negative direction. That's why, whenever I use margin to buy any stock, I stay below 30% margin to avoid receiving any margin calls during situations like this. Today, on my AMD Jan'00 $35 calls, I lost a good portion of profits I had accumulated during last three months :-( Fortunately for me, I'm still up 300% from Nov'99 in my options account (that I started with a modest sum) - mostly because I diverted some portion of profits I made into acquiring the AMD stock :-) Regards, Goutama