Replies to post #9150 on Advanced Micro Devices Inc (AMD)

[yourbankruptcy]

The difference between me and Elmer is that he usually write a lot of calls without worrying, while I'm usually in doubt and miss many opportunities in hope to be exposed to a major run of the stock. So far Elmer strategy proves itself to be much more profitable than mine. I was thinking to write August $7.5 calls for $0.40 yesterday. I did not do that.

[KeithDust2000]

Elmer, great explanation, thanks a lot! Is it correct to assume that there´s no real risk for the CC writer in your example, apart from "missing" out on potential gains of the stock he already owns?

Not quite sure about the premium, is it a fixed amount that is determined at the point the contract between the seller and the buyer is concluded? When will the seller get this premium, right away or at the end of the "deal"?


The opposite of a "Call" is a "Put" and we can discuss that too if you like.

Whenever you find the time!