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


To: Joe NYC who wrote (105327)4/13/2000 11:32:00 PM
From: kash johal  Read Replies (2) | Respond to of 1573696
 
Jozef,

re:"covered calls"

I think there are some subtle differences.

If the calls expire worthless - they reduce my cost basis with no immediate tax consequence as an example.

As far as no downside protection - maybe its a matter of semantics.

If AMD's stock price falls my covered calls value falls. This reduces my losses on the move. In my book that provides some downside protection. Just as when the stock moves up they limit upside.

regards,

Kash