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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.12+1.6%Dec 23 3:59 PM EST

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To: Jan Crawley who wrote (15133)8/28/1998 5:16:00 PM
From: Rob S.  Read Replies (2) of 164684
 
I plan to spend a good part of this weekend screening stocks and doing research. I will try to develop some hedge strategy around selling puts and selling short/calls. With this much volatility in the air the calls & puts should be at high premiums.

One thing that is important to determine how much further the sell-off in the market can go is the equity mutual fund deposits/redemptions. It turned negative for the first time in 8 years but only by a couple billion that was shifted into bond funds. The net effect is around $19 billion - about $17 billion normally goes into equity funds ($17+2=$19 less than normal). With foreign liquidity problems likely to cause a net flow out of equities, a continued drop from funds will be that much more important. Hmmm . . . could be ugly for a while. Their is lots of money "sitting on the sidelines". That may help the markets stabilize next week as Clinton and others tell us everything is really OK.

In the face of all this uncertainty, it's time to sell insurance and lottery tickets (puts and calls ; -).
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