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Strategies & Market Trends : Short Selling, Dark Side, Bubble Busting Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: mishedlo who wrote (3)	4/12/2005 12:21:55 PM
From: russwinter	Read Replies (1) \| Respond to of 361

I look closely at implied volatilities, and thetas on all my option plays. I don't want to be a put buyer when it's off the map, and would lean more to the selling put side of the trade. Right in AMD's case there is an IV of 70, and theta of 7. You really have to be right on those. If the IV and theta is real low, then I can be "kinda" right and still do well.

To: mishedlo who wrote (3)	4/12/2005 12:39:52 PM
From: regli	Respond to of 361

Be careful with AMD. It is hitting the sweet spot with its products. Though there is the options issue, I expect them to outperform Intel because of increased market share in the CPU area. In addition, the Japanese just recently issued a kind of antitrust ruling against Intel opening the market for AMD chips for Japanese PC makers. Japanese laptops comprise a significant portion of the laptop market and AMD just came out with a highly competitive chip (Turion) in that space.