Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: tejek who wrote (120973)	7/26/2000 3:05:27 PM
From: TimF	Respond to of 1572781

My point is that the market feels very irrational, and sitting out may be the best strategy. What do you think? I'm not prepared to sit out completly right now but I am continueing my plan to reduce margin (now down to under $5k from over $10k), so that I won't be caught by these price moves and be forced to sell at a loss. I my ZOMX (bought at 14 and change sold at 18 3/6), and now that I see FFIV is up almost 7 points I might sell it as well. Both were small positions. Edit : Sold my FFIV at 50. Tim

To: tejek who wrote (120973)	7/26/2000 4:34:43 PM
From: TimF	Read Replies (1) \| Respond to of 1572781

In addition to closing some small positions (for a profit in a down market and near the high for the day on all three sales, much better then my previous accomplishment of selling for a loss in an up market). And sold a Jan 100. I bought a Jan 85. The net cost on the spread was only 3 3/4 with a potential (and in my opinion likely) gain of 15. I also bought 20 more shares for my retirement account. Selling the small positions decreased my margin. My margin percentage is in my opinion still a bit too high but since the options aren't marginable the actual percentage of my position has been reduced by selling stock and buying January options for less then the cost of the stock. My chances of facing a margin call are now reduced without reducing my chance to profit from a rise in AMD's price. The downside is I am less deversified and If AMD stays down all year I will take a loss. If AMD crashes from here (something I consider unlikely) I will probably sell all my shares and buy back the short '03 120 Leap call. I might buy an '02 call or, if my options privileges get increased by then, sell a put or 2. Tim