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Strategies & Market Trends : The Millennium Crash

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To: Cage Rattler who wrote (545)	8/29/1997 2:15:00 PM
From: Tommaso	of 5676

I am afraid that you know as much as I do already. I have not even studied the LEAPS, which I guess is the acronym for those long-term puts you are talking about. The obvious advantages of the longer term puts are that it cuts down on transaction costs, and tou are much more likely to be "in the money" over that period of time. I guess I would look at the relative costs of the different strike prices and decide what I could afford to lose (I can't believe that you would lose at 85 or even at 80). I have about decided, though, that as with commodity futures, the people who regularly trade in these things have to be experts to survive and as I have mnetioned, I think if I go any more outright gambling on the downside it will be selling short SPY, the S&P despository receipes that trade on the Amex. I guess in a way there's more exposure to loss in case of a Japanese-style bull market than with puts. Let me know what you find out and what you do. I have been much happier with my purchase of BEARX, the fund that does shorts and puts, than with my own put-buying. Wish I could be more help!

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