Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: John Doyle who wrote (26395)	9/20/1999 3:52:00 PM
From: Jack of All Trades	Respond to of 99985

Sell/Write calls....

To: John Doyle who wrote (26395)	9/20/1999 4:00:00 PM
From: Matthew L. Jones	Respond to of 99985

Are you really wanting to hedge them all? KO is pretty weak, as is T and DIS. I might only consider hedging any position that you think has a fairly real downside risk. Since you are not holding anything that is REALLY overvalued, I might consider SELLING CALL options on those stocks and then possibly using those funds and BUYING out of the money PUTS on those stocks. This should buy you some insurance for free while only limiting your upside outside the strike you sell and only for the time period you sell. Matt

To: John Doyle who wrote (26395)	9/20/1999 4:40:00 PM
From: Haim R. Branisteanu	Respond to of 99985

To: John Doyle who wrote (26395)	9/21/1999 10:43:00 AM
From: Matthew L. Jones	Read Replies (1) \| Respond to of 99985

John, If you remember, yesterday I told you that I thought based on your particular portfolio of stocks, your risk was fairly minimal. I recommended writing calls on those stocks for some insurance, and if you still felt like you needed some additional insurance, you could take some of that income and buy out of the money puts. Today, you have a strong down day and your stocks are down minimally (with the exception of CAT) and my gut feeling is confirmed. If I can help further, don't hesitate to let me know. Matt