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To: PaperChase who wrote (47050)	7/10/1999 11:30:00 AM
From: Knighty Tin	Respond to of 53903

PC, I use time-sensitive puts because of the limited risk vis a vis short stock. Just as I often use long calls instead of long stock, though most stocks I like long do not have calls, as I fish in uncharted waters. The tendency of puts and calls to expire worthless is the ENTIRE reasoning behind using 90/10. The options are time sensitive, the investment program is not. I can lose 100% many times and one Compaq makes up for the losses plus some. It also works on the upside, but without any sanity to guide a bullish position, I have no way to know when to take call profits. It is easier with puts in a wildly overpriced market.