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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: waverider who wrote (12182)2/19/1998 7:47:00 PM
From: JZGalt  Read Replies (1) of 95453
 
Sorry DiamondH. Understanding puts and their ramifications with a corresponding long position are beyond a simple post. You have the basic concept right (puts are like insurance and holding puts is a good thing when the stock is going down), but you are then making the assumption that you need to hold them until their expiration. Just like writing calls you can cover your position when the situation no longer warrants holding the puts.

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Dave
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