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Politics : Formerly About Applied Materials
AMAT 301.11+6.9%Jan 9 9:30 AM EST

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To: Big Bucks who wrote (47494)5/31/2001 9:01:45 PM
From: Robert O  Read Replies (2) of 70976
 
re: I see no compelling reason to take a long position at this time. Buying PUTS has little risk and doesn't tie up much capital.

Seems to me that buying naked puts that may expire worthless (i.e., 100% loss of investment) has more than a 'little risk.' Sure there is leveraging power in options allowing less capital to be tied up relative to owning (or shorting) shares outright, but one gives up much for the pleasure. Time comes to mind. After I have lost my entire investment on an options play it seemed kinda risky in hindsight ;-) Seriously though, do you have a strategy in mind that displays this minimal risk…usually I hear that term with regard to covered options plays at least. TIA

RO
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