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: niceguy767 who wrote (103244)	4/9/2000 3:26:00 PM
From: eplace	Read Replies (1) \| Respond to of 1574711

niceguy...re:.In fact that $100 price target could arrive abruptly on April 13...AMD, with its recent close above $60, the upper boundary of its 5 year trading range, signalled confirmation of the paradigm shift, ushered in a new trading range between $60 and $100 and evidenced the initial stages of the bandwagon effect... Niceguy, I also believe that on Thursday or Friday this week $100.00 is a real possibility. I think 90 is better than 50/50 for this week at some point (at least intraday). Good luck to all of us AMD longs. If Thunderbird and Spitfire are as successful as I think they can be, Intel may start to see some hits on the server/business side. This may make the recent moves for AMD stock seem small in comparison. Ed P.

To: niceguy767 who wrote (103244)	4/9/2000 3:35:00 PM
From: Joe NYC	Read Replies (1) \| Respond to of 1574711

ng, Just finished a review of my AMD files and charts...and they are telling me that AMD July calls may be one of the most rewarding investments for Y2000. I am looking at those as well, and I find them incredibly expensive. Which strikes do you like? I am looking at May bull spreads now. Consider this: Buy May 60 for 18 1/4 (ask), sell May 80 for 7 1/8 (bid) for a debit of $1,112.50 per contract. If the stock ends up above 80, you realize maximum profit of $2,000 per contract, or 79% gain in 1 month. (you have 2 more months to do this until July). Breakeven is 60 + 11 1/8 = 71 1/8. If the stock ends up below 71 1/8, you lose money, anything above, you make money. A slightly safer (but less rewarding) choice would be let's say May 55 long call and May 75 short call. May 55 call is 21 7/8 ask, May 75 is 9 1/4 bid. The cost to acquire it is 12 5/8, or $1,262.50 per contract, the maximum profit (at $75 and higher) $2,000 again, but only 58% return. Breakeven is at 55 + 12 5/8 = 67 5/8. Joe

To: niceguy767 who wrote (103244)	4/9/2000 3:41:00 PM
From: Gopher Broke	Read Replies (1) \| Respond to of 1574711

Niceguy: AMD July calls may be one of the most rewarding investments for Y2000 Are you talking the July 85 at 10 3/4? They are a much higher risk now than the equivalent calls were a couple of months ago :( AMD may be moving up, but what if the Nasdaq has a bad period through the middle of summer? You can get Jan 80s for 19 which is a 5$ lower strike, leaving the additional premium over the July calls at only $3 1/4. AMD should move up between July and October so why take the risk on the July calls?