Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Charles R who wrote (58747)	5/19/1999 12:31:00 PM
From: Kevin K. Spurway	Respond to of 1584596

Re: "1) The stock could sky-rocket if the K7 yields well and is on time 2) The stock could go back to mid-teens if K7 is behind and AMD gets short-end of Intel's June pricing assault (with any yield problem, I can easily see ASP significantly lower than Q1)" One option is to buy a call and a put at or near the same strike price (near market price). This is called a straddle. It's essentially a volatility play. Kind of expensive, though, given you have to shell out for two option premia. Kevin

To: Charles R who wrote (58747)	5/19/1999 12:36:00 PM
From: Jim McMannis	Respond to of 1584596

RE:"Boy, that was cryptic! I kind of share Scumbria's thinking here. It will be good if the option-trading experts can shed some light on what option strategy would make sense for AMD at this point in time given: 1) The stock could sky-rocket if the K7 yields well and is on time 2) The stock could go back to mid-teens if K7 is behind and AMD gets short-end of Intel's June pricing assault (with any yield problem, I can easily see ASP significantly lower than Q1)" I really didn't want to go into option strategies. You could enter a straddle position and hope for a major move either way but the charts indicate a nice round bottom is in and the stock is trending up. I usually only trade with the trend. Remember that >80% of the time people lose money on options and of the three things that can happen to an option...two are bad. AMD is such a volatile stock I don't even know if I could recommend writing covered calls. Jim