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


To: Elmer who wrote (117144)6/22/2000 3:47:00 PM
From: that_crazy_doug  Read Replies (4) | Respond to of 1570917
 
<< Why would I be any worse off than those who went long? If the stock went down those who bought calls would lose everything. That's not risky? My risk is limited. Do you foresee AMD going to zero? I don't. I didn't always feel this way but with a competitive product and worldwide demand I see AMD as a viable company for some time. If the stock goes down and I get assigned is that any worse off than those who bought shares? Why don't you call share buying risky? I'd be buying at a discount because of the premium I received. Your view of risk suggests you should be in a passbook savings account if you want to sleep at night. >>

When buying stock or calls my losses are limited to the amount I invest. When writing naked puts you can lose a multiple of the amount you invest. I think your strategy is excellent, but you playing it off like it's a very low risk strategy is insane. There is a reason why it's much harder to get authorization to write naked puts then it is to buy calls or buy stock. The fact that you are arguing against all the brokerages and the SEC doesn't really help your case :P