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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (70644)	11/16/1999 11:52:00 PM
From: sammaster	Read Replies (2) of 132070

what are your thoughts on buying long term deep out of the money puts on a "non-volatile" stock like GE. the time premium is very cheap such as jan 2001 100 puts for $4-5 ge was sitting at 100 just a few months ago and if any meaningful correction happened ge would dip way below this... average past price to sales ratio around 1...now above 4...and if sales dipped for any reason and p/s halved to only 2 then this stock would be sitting at around 60.... seems like with all the bloat it is much cheaper to long term put GE and save the short term puts on the volatile techs... samir

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