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


To: Pravin Kamdar who wrote (102729)4/7/2000 2:53:00 AM
From: Goutam  Read Replies (1) | Respond to of 1575420
 
Pravin, re:< Best of luck with your 200 APR 85 calls. It seems that that is a little risky to me. I hope you can get out with a profit before expiration. I am guessing that the stock pegs to $80 on expiration day. >

I agree that Apr 85 calls are riskier than some of the other call options. I just wanted to have an AMD call position open to capture profits due to any upside move when other analysts join in upgrading AMD before the earnings day. These will be out the door by Apr 12. Regarding the time premiums, if the stock holds at the current levels, we might even see slight appreciation in the price as EPS release date approaches. The day after, all the out of money calls will lose most of the time premiums built in them - that's why it would be important to get out of them on or before Apr 12.

Goutama