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


To: kash johal who wrote (117145)6/22/2000 3:56:00 PM
From: that_crazy_doug  Read Replies (1) | Respond to of 1570918
 
<< Selling puts is inherently safer in event of a meltdown. >>

Say Dresden bombs out and AMD goes down to 30.

If I had put $1000 bucks into AMD at 90, I'd have 1/3rd of my money.

If I put $1000 into AMD calls when it was at 90, I'd probably have near $0.

If I recieved $1000 in premiums for puts I wrote, (depending which ones) I probably owe several times the initial premium.

I don't see how that is inherently safer in a meltdown, but maybe I'm missing out on something big here.