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Politics : Formerly About Applied Materials

AMAT 230.31

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1:50 PM EST

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To: David Rosenthal who wrote (26999)	12/7/1998 8:55:00 PM
From: Robert O	Read Replies (2) of 70976

If you follow Mike Burke's trading carefully he does very well with much less risk than most people take on. He trades options in a 90/10 portfolio where 90% is in money market earning interest. With the other 10% he is aiming for home runs with calls and puts.. Even if all the options expire worthless he still has a portfolio of that is about 95% of its value at the end of the year so his risk is about 5%. And he has done very well this year with this small risk. Um, I don't follow Mike at all, but based on foregoing Mike seems to lose 50% of the money he invests in options (10% of his portfolio is used for this type of "investment") while making a money market rate of return on the 90% of principal in MM. As Marc Antony said over his friend Cæsar's grave: "Ambition should be made of sterner stuff."

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