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Strategies & Market Trends : Bonds, Currencies, Commodities and Index Futures

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To: Patrick Slevin who wrote (9418)2/4/2006 3:37:43 PM
From: GROUND ZERO™  Read Replies (1) of 12411
 
I agree with you completely in everything you posted, I would only add that if you're also short the underlying contract, then in a down market, you are fully protected while the Put rises in actual price, while the premiums still continue to erode over time, and that's the name of the game in a covered option situation... it's a beautiful thing...

GZ
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