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


To: niceguy767 who wrote (104112)10/30/2003 12:55:39 PM
From: TechieGuy-altRead Replies (3) | Respond to of 275872
 
Question on AMD short put/long call strategy:

I'm thinking of augmenting my current long AMD position with the following:
Selling Jan 15 puts (present price ~$1.10) and buying 1.5X as many Jan 17.5 calls (~$0.75) from the proceeds.

The "bet" is that presently AMD is undervalued to the extent of at least $5 - $15 which should get corrected by option expiration in Jan.

Any suggestions/alternatives?

TG