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Politics : Ask Michael Burke

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To: Amir Shalit who wrote (78)	7/24/1996 7:31:00 PM
From: Knighty Tin	of 132070

Amir, I usually get in too soon on my puts. Which is one reason I prefer puts to short sales. If you remember, I mentioned that my puts expired worthless on Presstek 4 times before it finally hit the wall. Overall I got a quadruple out of that move and am still trading it for smaller profits now. I just turned a profit on Ascend recently, because I was way too early there. And, though I am making money on my current USRX positions, I am still behind since I've been buying puts (though the 9 point drop after the close today should change that situation. It looks like it is finally coming true on this one.) Anyway, I don't think I'm the best guy to ask about timing. I just buy when I think they are overpriced and stick with it until they go my way or I decide that I am wrong. Not very scientific, but the big winners make up for the nagging losers. My advice is to diversify and look for new highs to start a put position. In other words, find a technician to tell you when a stock is breaking out on the upside and buy puts at that time. -G- See, technicians aren't totally useless. And use a 90/10 or 95/5 allocation to protect your net worth when you are wrong. You have to be able to play again in this game.MB

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