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To: Jack Clarke who wrote (14848)	3/15/1998 12:52:00 PM
From: Terry Rose	Read Replies (1) of 18056

Jack Clarke, Even though you may have not profited much on the market's upswing, there are some good opportunities to trade the downside. I tried OEX puts, but I was hindered by the Fed plunge protection team who bought a huge amount of calls or future long positions the day after the October correction to support the market. I currently am buying in increments J.P. Morgan 1999 leap puts due to their high derivative exposure. Any major default in the 50 trillion dollar global derivative market should have a ripple effect on any of the major players in this game. As far as potential causes that may be on the horizon, here are some: 1. Chinese currency devaluation 2. Failure of a major Japanese Bank 3. Bank of Japan increase in interest rate 4. U.S. Federal Reserve interest rate increase. 5. Indonesian moratorium of debt payments. Even if by some luck none of this breaks the global derivative bank, JP Morgan is trading at a PE of 18 and I doubt that their profits are going up high enough to justify such a high PE. Terry,

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