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Strategies & Market Trends : Stock Attack -- A Complete Analysis

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To: donald sew who wrote (36488)	11/28/2000 7:56:01 AM
From: SpecialK	Read Replies (1) of 42787

Don and all, Regarding puts & calls, I understand how many view put/call ratio, as a barometer of bullishness and bearishness. There is no way of separating the "gambling" call buyer and the "conservative" covered call writer, when looking at calls. As well, I know many folks who will sell puts to get in positions at lower prices, i.e. write Dec 50 puts in Cisco for $3, gets you in the stock at $47, vs. buying at 51. If it doesn't close below $50, you keep the $3 and do it the next month. I believe institutions and mutual funds and hedge funds sell puts, ahead of buying stock, so they can add to their returns. These issues make me question the reliability in today's market of put/call ratio at the numbers that were common even 2 years ago. Would love to hear your comments. Ketan

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