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Non-Tech : Raptor's Den

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To: velociraptor_ who wrote (2981)8/22/2002 6:50:57 PM
From: mishedlo  Read Replies (1) of 10157
 
DOW isn't going to 9500.
Velo if you can guarantee that, we should all put 100% of our money in deep ITM dow leap puts.

They have negative time decay value because they are european style. Even if the dow stays flat for 2 years they make money if you hold them.

But....
Why can't we gap up a couple hundred DOW points and run another 300. Or gap up 100 two days in a row and run up 300 points additional over 2-4 days.

How can you be so 100% sure the DOW will not see 9500, 9700, or heaven forbid another DOW 10K party?
Leap puts are a lock cinch lead pipe IF you are correct. That is a huge IF, but how sure are you? In an IRA what % of funds would you suggest putting on such a play, or in the S&P 200% down fund or whatever. For that matter do you have a % allocation for a gold fund?

In other words how about some %'s that you think might be reasonable allocation from here on out?

Thanks

M
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