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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (26912)	7/20/1999 6:02:00 PM
From: t2	Read Replies (2) \| Respond to of 74651

taxman, the difference in our options buying approaches is that i would only make a call in one direction ---either bullish or bearish. Up until this month, i only bought call options as the market was dropping. I don't really see the point of buying calls and puts both. It makes sense to me to buy the stock and hedge using covered calls and puts. I guess your strategy can work if you are picking your stocks for call or put opportunities. I still have some MSFT leaps (in the money in retirement account) but even with this, i don't believe i am more than 40% into stocks--basically in bonds and mostly money market. I do have some puts on a couple of mid cap stocks playing the selloff after the earnings strategy. Still looking for more candidates for this strategy. I don't go 100% options--have not done that for months and will probably never will----5% maximum limit is in effect for me in my margin account. I am using very little cash playing puts. Using more cash for shorts.