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

To: that_crazy_doug who wrote (117186)	6/22/2000 4:00:00 PM
From: DRBES	Read Replies (1) \| Respond to of 1570969

re: bbspot.com It seems now more than ever that AMD means to match or exceed inteL product for product. Regards, DARBES

To: that_crazy_doug who wrote (117186)	6/22/2000 4:24:00 PM
From: minnow68	Read Replies (1) \| Respond to of 1570969

Doug, What Elmer is saying about risk with writing puts is true in the special case of reserving enough cash to cover assignment. For example, if I write ten contracts of AKDMD (Jan 01'120), if I keep 120 grand in cash to cover assignment, I can never be worse off than if I had simply purchased the stock. The problem with this scenario is who actually does this? Mike

To: that_crazy_doug who wrote (117186)	6/22/2000 4:30:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1570969

Re: "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" First off I haven't invested anything and I still don't see how selling 1 put contract at today's price is any more risky than buying 100 shares at the same price. Please explain this. If I couldn't afford to accept assignment I shouldn't be selling a put but the same could be said about buying the shares. The only difference I see is with the put writing I would end up with the shares at a cheaper price than if I bought the shares outright assuming a price decline. My real intention is to have the puts expire worthless. Re: "I think your strategy is excellent, but you playing it off like it's a very low risk strategy is insane" To mitigate risk, you could do a spread. Sell an AMD July $90 put for $6 1/8 and buy a July $85 put for $4 1/2. That limits your risk to $3 3/8s and caps your profit at $1 5/8s. EP

To: that_crazy_doug who wrote (117186)	6/22/2000 4:50:00 PM
From: niceguy767	Read Replies (1) \| Respond to of 1570969

crazy doug: Re: "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" Comment: You're dealing with a Fuddy Fixation here...Consequently not much hope can be held out that'll you'll penetrate his grey (cement(?)) matter...At the beginning of the year, Fuddy, although a card carrying AMD bear when AMD was at $30, asserted repeatedly and vociferously (guess he thinks that strengthens his inane argument)that his selling puts was a bearish strategy consistent with his bearish viewpoint...The logic of the argument that buying puts is bearish and risk defined (and therefore consistent with his highly bearish evocations and conservative risk profile) escaped him completely...To this day he continues to claim that selling puts is bearish, notwithstanding that buying puts is bearish and the opposite of the bearish practice of buying puts is selling puts (and therefore not really bearish. He also claims that selling puts is a conservative strategy, notwithstanding, as you once again point out, that selling puts is not really risk defined (and therefore hardly conservative)as one can lose much more than one's initial investment by selling puts)... I suspect any new SI member who signs on 3 months from now and picks up the Fuddy exchanges will,once againg, be inundated by Fuddy's fantasies that become a reality in his own mind!