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

To: xun who wrote (117087)	6/22/2000 12:11:00 AM
From: Charles R	Respond to of 1579810

panic, <When did you become an options jockey:^) > I have always sold puts. <Seriously, as the AMD options premiums are sky high, selling near/at/in the money puts is actually a safe and VERY profitable way to use margin power without actually incurring margin debt. Currently, I wrote July 90 at 7 1/4, Oct 85 at 15 1/2 and Oct 90 at 15 7/8. For example, I wrote July 90 puts and used premium to buy July 90 calls two days ago. I sold those July calls today for a 25% return while still sitting on those puts. If the stock comes down, I'll buy those July 90 calls again. Otherwise, I just wait for July expiration.> I had sold some 85 puts and 100 calls for June but I am sitting out July. I may wait till the second week of July and write some juicy July 110 or 120 puts and collect some nice premiums (assuming the stock is above that range by then) <Thanks to a Kash's tip, I did 1:3 credit spread when I sold Jan'03 120 calls at 30 1/2 and bought Jan'01 120 calls at 9 3/4 last week. They are doing very well now.> That sounds like a very nice and safe high return play. Good luck, Chuck