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Politics : Idea Of The Day

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To: Anne Stehley who wrote (14603)	11/17/1997 11:32:00 AM
From: IQBAL LATIF	Read Replies (1) of 50167

Anne I was wondering why don't you wait for close of SOX above 320 for re-entering in the meanwhile selling atleast 10 to 15% out of money puts for stocks you want to own- not a single put more and use the premiums to buy out of money calls by atleast 10%. This way if market remains weak you will have owned stocks at much lower prices or if it flies you are in with little cost, this strategy would require for a bull like me to be long 2 contracts more then what I am short. Like supose I want to own 200 CS - I will sell 2 25 CS puts for March and buy 3/ 30calls for March, now if market tanks you will own 200 shares at 25 but if market goes up from here your put premium will evaporate and call premium will nicely grow. This is an extremely risky trade but I do it all the time best rewards for beaten down stocks but worst in a falling market. You can even play big stocks like 1 or two contracts- just play small don't overstep on number of contracts, if this market turns we will see this kind of trading wiping out people.

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