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To: TRCM who wrote (153231)	2/8/2000 12:18:00 PM
From: edamo	Read Replies (1) \| Respond to of 176387

trcm "bearish put sales" institutions at times consider it "bearish", but in reality no different then a below market limit order to buy. it's a hedge institutions use against uncertainty and lack of knowledge of the short term movement of the underlying. it is a contradiction on the part of the institution who is bullish on the stock, but wants to take advantage of a better price. it is "bearish" and also "foolish" to set a position at a near term over bought, which is what institutions do, when they have funds to commit.... the reality of the strategy, as outlined in mcmillan (page 275) "one needs to be somewhat bullish or neutral" roth chapter 12 (page 63) "strategy: writing leaps puts outlook: bullish to very bullish" roth page 77 "the leaps money generator" "before we describe it, we repeat our comment about the need for a very bullish outlook on the underlying stock. with that condition satisfied, we can take an almost mechanical approach. start off by writing leaps puts...." because an institution applies a label to their position, to justify taking it, does not turn a bull to a bear....one just has to look at institutional performance. if one does not deal on a daily basis with a put selling strategy, then they do not fully understand same. it is a much misunderstood and maligned bullish approach.