Replies to post #69591 on Advanced Micro Devices Inc (AMD)

[highlandpk]

long term that is still my strategy

I proposed a short term strategy on the Intel board - the AMD puts in question were $30 Feb 06 and unfortunately they didn't hit my buy price :(

Posted by: highlandpk
In reply to: alan81 who wrote msg# 23725
Date:1/6/2006 2:56:21 PM
Post #of 23987

I've been watching your Feb options. I may actually take a flyer on them if they hit my price target by late next week ($.10-.20) (a little insurance for my long expiration anticipation securities). AMD, since I've been following this saga, has a tendency to run up a lot into earnings week, but often starts tanking a few days prior and regardless of results seems to receive a nice buzz cut in the few days following. If it hits 36-37 next week, my price target probably gets hit. I wouldn't be surprised to see it pull back to 33/34 prior to earnings and 30/31 after. If that happens (i know there a lot of "ifs" in this scenario)those $30 puts could well see somewhere between $1-$2 again. FWIW, Etrade (in Canada anyway) doesn't charge per contract if the price is below $1 - just the $19 trade fee.

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I'm thinking about swapping the 07 $40s for 08 $50s (they cost about the same)

I'm also thinking about Feb $27.50 puts as a short term trade to raise some cash in the event AMD is again rewarded with a post earnings haircut.