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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Richard Nehrboss who wrote (66633)	8/23/1999 10:40:00 AM
From: Knighty Tin	Respond to of 132070

Richard, That is the reason why I buy puts (and calls, when I'm bullish) in a 90/10 program instead of selling short. You never know how stupid the idiots will really get on a scam stock. With puts and 90/10 (or interest only or 80/20 if you are hot), you live to stay at it until you are proven right. Here is the way I would play those bloated winners: sell at the money 2 year Leap calls and buy out of the money same expiration puts. With these fluff stocks, the premiums are extremely high and the at the money usually covers nearly all of the downside to the put strike price. And you get standstill returns in the 15% range. If the manic bull continues, you will make more in a shorter period of time by an early unwind.