Replies to post #750 on Advanced Micro Devices Inc (AMD)

[neye_eve]

Elmer - investing in general

I'm still just squirling both my 401K and trading money away in cash. I'd rather miss the bottom and get in on an upswing than take the chance that Iraq/Korea makes something go haywire in the near future and drop the markets significantly. If both of these are resolved satisfactorily, then I'll probably get back in.

It's worked relatively well for me this past 1.5 years.

Yeah, it's not exciting, but since you asked how people are investing...

neye

[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.

[sgolds]

Elmer, investing: Long time ago I went into a cash/equity mix and did very little buying or selling in the past two years. I've been waiting out the market. So, yes, I am investing but not actively. AMD is my second largest holding, after CHKP.

So far things look very promising for AMD in 2003. Most of my purchases were around 10 - 12. I am not in a rush, but this stock can make sudden moves. Should it get over 20, I start lightening up on it. Otherwise, I don't need the money right now.

For fun and profit, I am actively working on my business. It is directly computer WiFi and security, so when I have enough pieces in place I will share some more info here.

Today I am working on my web site. My domain is up and running well, and I have some supplier contracts.