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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: reynoso who wrote (8958)	9/18/2000 4:44:56 PM
From: TimF	Respond to of 275872

Reynoso, What I originally bought was a bull call spread. I bought lower strike price calls and sold higher strike price calls. (I bought 1 Jan '03 strike price 50 call which turned into 2 Jan '03 strike price 25 calls after the split and sold 1 Jan '03 strike price 120 call which turned into 2 Jan '03 strike price 60 calls). The long calls give me the right (post split) to buy 200 AMD shares at any time between now and Jan '03 expiration for $25 a share. The short calls give someone else the right to buy 200 AMD shares from me any time in the same time period of $60 share. If AMD is say $65 in Jan '03 I would buy the shares for $25 and sell them for $60 (missing out on the extra $5 per share. If AMD is $50 in Jan '03 I could buy the shares for $25, and the short $60 calls would expire worthless. Today I bought back the short $60 calls. Partially because the price had gone down (so I made a profit on the short call position), and partially because I didn't like the way my broker was counting the short calls against my margin. Tim