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To: Clappy who wrote (696)	7/21/2000 12:03:26 PM
From: edamo	Read Replies (1) of 1115

clappy.....buying puts, no more at risk then buying calls, loss is limited to the premium out of pocket. was addressing "selling puts".....which is actually a short position, that benefits from the stock going up....the max risk is buying the stock at the strike, and cost adjusted by the amount of premium to you. buy calls=long/bullish buy puts=long/bearish sell puts=short/bullish sell calls=short/bearish above is a very simplistic definition...a long call and a short put benefits from increased stock price, conversely a long put and short call likes to see the stock go down... many good books on the subject... i prefer roth "leaps", as it is an easy read! good luck, ed a.

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