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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Robert Schling who wrote (80197)	12/17/1999 1:04:00 PM
From: pater tenebrarum	Read Replies (3) \| Respond to of 86076

Robert, the right way to play BK's is to buy options that are at least one to two months out from the front month, as usually the selling tends to accelerate right after the expiration of the front month. since the BK is impossible to time, it makes sense to carry some index put positions along at all times...these mad binges we have at the moment have the advantage of making put options quite cheap... note that speculation in equity call options has reached unprecedented levels. put/call ratios are at all time lows and outstanding call contracts at all time highs. if not for the Fed's incessant printing exercises we would have had a considerable sell-off already based on this. PS: are you from Germany?