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

To: Time Traveler who wrote (33130)	6/4/1998 12:56:00 AM
From: Elmer	Respond to of 1572147

<Since Time Traveler does not own any AMD stock at this moment, how does Time Traveler write puts?> How nice it is to return this thread to the topic of making money gggg As I'm sure you know, a put gives the buyer the right to sell a fixed number of shares at the strike price at any time up to expiration. For this option, the buyer must pay a fee known as the premium. For every buyer there is a seller, in this case the seller could be you. You only need to be ready to purchase those shares at any time up to expiration date. You need to have the cash or margin in your account ready to perform if so called on. The cboe http:\\www.cboe.com shows that you can get 3/8 for a AMD July 15 put. If you sell 10 contracts (each contract is 100 shares) you will pocket $375 (minus commissions). If between now and expiration date you should be assigned, you will be required to pay $15,000 for 1000 shares of AMD. In any event you will always keep the $375 but you said you were willing to buy at $15 anyway. Just a thought.... EP