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


To: Gopher Broke who wrote (118848)7/2/2000 6:13:57 PM
From: Gopher Broke  Respond to of 1578701
 
Re: Recent AMD price action

I just read that a fund manager who is long AMD has secured his current gain by buying $80 put options against his position. I am wondering whether this kind of behavior could explain the recent increase in the number of shorted AMD shares.

I am guessing that a put option writer who wishes to remain reasonably neutral on the underlying stock will short the shares if the price drops below the strike. Therefore, in this example when the share price dips below $80 it will encounter further downward pressure from this shorting.

Comments?



To: Gopher Broke who wrote (118848)7/2/2000 9:03:43 PM
From: tejek  Read Replies (3) | Respond to of 1578701
 
I don't see how Intel can support their current ASP when Dresden is cranking out over 5 million processors per quarter that run over 800 MHz and Willy is only being produced in "limited quantities".

Gopher,

I don't think Dresden is anywhere near the number you cite; and it would take a number probably greater than 5 million to seriously effect Intel's ASP's. Intel is selling more than 32 million chips annually. That's a number hard to dent.

ted