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

To: kapkan4u who wrote (112956)	5/26/2000 11:53:00 AM
From: Elmer	Respond to of 1571931

Re: "It pains me to see how many people on this thread pay ridiculous premiums for AMD calls. It is like carrying water in leaky buckets. If one is bullish on a stock why not accumulate a long position, possibly with the help of some margin? If all you have is calls, you can't even borrow against them. So even if one is lucky for his calls to appreciate in price, one's margin power remains the same. It sucks all around, no matter how you look at it." This is why I sell options and never buy them. EP

To: kapkan4u who wrote (112956)	5/26/2000 12:06:00 PM
From: xun	Respond to of 1571931

Kap, <It pains me to see how many people on this thread pay ridiculous premiums for AMD calls. It is like carrying water in leaky buckets. If one is bullish on a stock why not accumulate a long position, possibly with the help of some margin? If all you have is calls, you can't even borrow against them. So even if one is lucky for his calls to appreciate in price, one's margin power remains the same. It sucks all around, no matter how you look at it.> I don't agree. AMD options made me dream comes true. Options like all other derivitives are very powerful tools with double edges. It's not options fault. If anything wrong, it's users' fault. As AMD price moves ever higher, so are its options risks. You are aboslutely right in that options don't count as equity in my account and I can't borrow money agaist them. But that's part of the cost to use its leverages. When fear and greed is involved, it's subjects not objects that make it or break it. Just my 2 cents. panic

To: kapkan4u who wrote (112956)	5/26/2000 12:14:00 PM
From: chic_hearne	Respond to of 1571931

Re: It pains me to see how many people on this thread pay ridiculous premiums for AMD calls. It is like carrying water in leaky buckets. If one is bullish on a stock why not accumulate a long position, possibly with the help of some margin? If all you have is calls, you can't even borrow against them. So even if one is lucky for his calls to appreciate in price, one's margin power remains the same. It sucks all around, no matter how you look at it. Kap, Bahhh... July 21st, 700 shares at $45, 1000 shares at $60 Jan 19th, 700 shares at $70 My total investment on these is about $10,500. I'll be taking what's under the strike on margin. How the hell else am I supposed to get 2400 shares when I'm starting with basically nothing? I'm also sitting on options to 3000 shares at $100 in January and 1500 shares at $90 in July. We'll see how those work out. OTOH- I have options to another 5600 shares that look to be dead in the water at the moment, but you can't win them all. chic

To: kapkan4u who wrote (112956)	5/26/2000 12:15:00 PM
From: niceguy767	Respond to of 1571931

kapkan4u: As one of the card carrying AMD options players, I agree with you that the options risks are enormous...but so too are the rewards if one is nimble enough...As I've said before, TXN and AMD are the only 2 stocks in the past 7 years that have exhibited the prerequisites necesssary to interest me in accumulating a call option base position...As you know, if one accumulates an in-the-money" call base, one can profit by selling short term calls against that base and profit from the very rich timing premiums...or take out insurance by purchasing puts to protect oneself against an adverse price movement like the past 2 weeks...There is no one best investment model, imho, one must be flexible and develop a model most suitable to the perceived characteristics of the underlying company...In my RRSP, I prefer shares that hopefully will appreciate over the longer term...Outside my RRSP, a combination of investment strategies has proven valuable to me, a combination that includes both share purchases and options purchases...Personally, I don't intend to re-evaluate my AMD options strategy until AMD reaches $120...(the sooner the better!)