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 : Options -- Ignore unavailable to you. Want to Upgrade?

To: Geof Hollingsworth who wrote (3424)	2/22/2000 7:39:00 PM
From: RocketMan	Respond to of 8096

Geof, it would be presumptive for me to give you any advice on a put strategy for TERN. I have only bought puts as a hedge against a long position, other than the puts I bought on RMBS because, well, because it seemed like a no-brainer. My normal strategy on buying calls is to buy them slightly OTM and as far out as possible, but that is because I believe the stock is in a long term up move and the time premiums are minimized relative to the upside for a small move in the stock. The mirror to this, if I believed the stock was in a long term downtrend, would be to buy slightly OTM puts as far out as possible, but I would be nervous doing this with a stock like TERN that could explode any moment. However, since you asked to leave wisdom aside, that is what I would do. One modification to my strategy, since you think the next week or two could be critical, would be to load more puts this week and next, perhaps closer to the money, and the remainder further OTM over the next few weeks. Keep in mind, though, that I would be the last guy to ask about a put strategy :-)