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To: voop who wrote (173)	12/27/1999 6:57:00 PM
From: Thomas J. Smith	Respond to of 8096

ROBV

To: voop who wrote (173)	12/27/1999 7:02:00 PM
From: taxman	Respond to of 8096

puts are protection against a down market. you can buy puts with at least a six to nine months duration and in some cases out to 2002 so you don't have to do it every month. in any event for me having some puts is safer than being 100% long. actually there is no cost for me as i have made money on my puts in spite of a bull market. in addition, having puts relieves stress when the market turns down and helps to avoid making rash emotional decisions. as for puts being expensive--they are not. as you recently pointed out aol had a 50% drop within just a couple of months--and that was without a bear market. i generally consider the term "naked puts" as one who is short, rather than long, the put. regards