Advanced Micro Devices Inc (AMD)

[yourbankruptcy]

Elmer, it's very hard to play options on $5 stock. You can't even establish a spread. Your puts look great. Your calls most likely will be assigned, so you already know your profit. Are you comfortable with that profit? If yes, then your position is optimal.

For conservative players I strongly suggest to go long and write July $5 calls for $1.30. That will make your entering point at $4. But profit will be very modest. I feel that Opteron is for gambling, not for investing. Right now I'm plain long.

Good gamble for 100% profit in July maight be long $2.5 calls short $5 calls. Price is $1.10 + comission, max profit $1.40 - comission.

This spread may be established in a risky way as well. Wait for next Opteron-related run (we know this stock likes short 30% runs and then drops back). Write $7.5 calls when its over 20% up. Wait till its down to half of that and go long with $5 calls or even $2.5 calls, whatever.