Advanced Micro Devices Inc (AMD)

[sgolds]

Doug -

This really belongs on a board in the "Market Trends and Strategies" area, don't you think? Nothing AMD specific.

Taken in isolation, you have a point. Msg# 28979 is meant to provide background for why I am not buying calls in AMD, despite the fact the company is doing very well right now. I probably should have made that clear in the post rather than relying on context.

I think you're forgetting about LEAPs. And you'd have to constrain the strike price, otherwise your (bad, IMO) advice regarding options is in effective conflict with your advice concerning common stock.

It is a matter of long term investing vs. short term trading. I hold AMD common shares long because I think the company is doing very well, and I am willing to ride out any short cyclical bear. LEAPs would be another way to make an investment with a time horizon beyond this year, it just isn't my investing style to use LEAPs instead of common shares.

I am short term bearish on the market, so I won't purchase any short term long calls. However, I am long term very bullish on both the market and AMD, so holding common shares makes sense to me. When I get short term bullish on the market then I will (probably) purchase long calls on AMD, especially if 90nm exceeds expectations.

So my positions are not in contradiction, they have different time horizons.