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To: Poet who wrote (6080)	4/6/2000 9:09:00 AM
From: edamo	Read Replies (2) \| Respond to of 8096

poet...."longer time much slower theta" why hesitate?......paul describes an imminent rain storm....it's a great umbrella, even if it closes slowly... object of any strategy is not to get thoroughly drenched...and while you are safe and dry, you have the time to replace your "repair" with perhaps a shorter term oversold position in a different stock.... it's a dynamic... i sold all 01 leap puts on monday....not the best return, but a hedge to replace the common i blew out...better then covered call writes, if the stock bases and trends up, i can buy in at a higher price(strike plus premium limit), subsidized by the deteriorating put premium....... not sure if this is "text book".....but it has worked for me in many uncertain markets....i'll capture immediately the inflated implied volatility when things normalize....this tactic is stock specific, in the sense that i wouldn't do it with speculative/weak underlying issues....with those i would cut and run...

To: Poet who wrote (6080)	4/6/2000 10:29:00 AM
From: PAL	Read Replies (1) \| Respond to of 8096

Poet: The only thing that makes me hesitate is tacking on another two months to the trade, as the longer time means a much slower theta. The strategy I presented was for someone who is at the brink of getting margin call. It buys time, and in the mean time, you can reposition your portfolio if you need to. As ed says : it is an umbrella in rainy days (gosh he is such a good writer !!). As you already know, time is usually your ally if you are short put or call, but it can be your enemy during turbulent days. As for JDSU, moving April to June might not be a bad thing becuase earnings report, after tax payment crunch, etek merge, crono buyout completed, etc, etc. right now we only read people kicking the market when it is already down. best regards paul