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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 681.53

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Dec 2 4:00 PM EST

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To: LarryCPA who wrote (17960)	6/20/1999 10:03:00 AM
From: Benkea	Read Replies (1) of 99985

No Larry, I am a buyer of puts against a long stock position. For example, I have 3 1/3rd X more CMGI puts than long shares. The puts cost me 17% of my long shares. This way, if the move is violent as usual, I should make more on equity on the way up than I lose on the puts, and more on the puts on the way down than I lose on the equity. Who knows, I might even get lucky enough to sell the equity after a huge run in time to re-invest the proceeds in puts, or sell the puts after a huge run down to re-invest the proceeds in more equity. Only drawback is the short 4 week ish window. Oh yea, and I get to participate in the CMGI IPOs in the meantime now that they are selling at the offering to CMGI shareholders.

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