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Non-Tech : Dorsey Wright & Associates. Point and Figure

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To: XOsDaWAY2GO who wrote (9039)8/24/2000 6:44:11 PM
From: Tommy Dorsey  Read Replies (1) of 9427
 
Because Barbara, the premium is low. Low volatility low premium in general. Therefore buying is preferred to selling. And if you think selling uncovered calls is a way to go short equities, think twice. The risk is unlimited. When it is not hurricane season and there are no hurricanes is sight, hurricane insurance is cheap ie. market rising and no trouble in sight. When the market drops or there is a hurricane, hurricane insurance becomes expensive, ie. VIX at a high level. t
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