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

To: tejek who wrote (140859)	12/7/2001 3:31:43 PM
From: TimF	Read Replies (1) \| Respond to of 1586583

I can buy puts. I don't have much money to play with though, I'd have to go on margin to do it or sell some AMD. Also its down almost 40% today, I wonder if it will get a bounce even if it does go down further after that. Tim

To: tejek who wrote (140859)	12/7/2001 5:04:09 PM
From: TGPTNDR	Read Replies (1) \| Respond to of 1586583

Ted, Re: <If so, I would buy them on HAL...> Here's the full table on HAL.(Near term, in the money) quote.cboe.com Calls on the left and puts on the right. Hal @ $12.00 as I type this. HALLB, Current Year December Call $10.00 is has bid $2.75, ask $3.40 and last $2.95.It's $2.00 in the money. Time premium on last sale was $2.95 - $2.00 = $0.95 for the right, but not the obligation, to buy each of 100 shares of HAL until the Dec. close date which is 12/21. Essentially, ~10% for 2 weeks interest on $12.00. Pretty good rate of return for the seller. HALXB, Current Year December Put $10.00 is has bid $0.70, ask $1.20 and last $0.95.It's out of the money. Most brokers won't bother to exercise(For you) unless an option is $0.50 in the money. Some need $0.75.(They figure you should just write off amounts under $100.00.) So: If HAL doesn't fall the fellow who buys the put is out $0.95. HALL has to fall to $9.05 for him to profit(before comissions which are steep.) Once again, we're looking at close to 10% interest for two weeks on $10.00. Note that both the bid and ask are to the floor trader. If you put in a buy on HALXB at $0.80 that bid won't show up 'till the floor trader moves his bid to $0.80. He can buy puts at $0.70 'till nobody will sell them to him any more -- while your bid for $0.80 sits there ignored. That bid and ask is essentially the spread. NEVER buy or sell Options at the market! I got those Puts I bid on in Message 16755640 Message 16756043 Got filled for -INQME(Jan 25 puts) $0.20 and -INQXF $0.25(Dec 30 puts). That's $0.20/share times 100 shares or $20.00/contract for the -INQME. My brokerage charges me $2.50/contract plus $15.00 per transaction. If I bought one I'd be paying almost as much for the fees as for the goods. I bought 10 of each. As of close today, -INQME last was $0.20 and -INQXF was $0.30 , virtually no change, despite the fact that INTC fell almost $1.00 today. These things are WAY out of the money. But the leverage is outrageous as the price gets closer to the strike. As you can see from quote.cboe.com the Calls dropped far more than the puts went up. That's par for the course. The calls had much more time value priced in than the puts, 'cause the stock was going up. There is a quick course at cboe.com that'll give you an overview. tgptndr quote.cboe.com