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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (8922)	4/15/2000 1:36:00 PM
From: SJS	Read Replies (1) \| Respond to of 24042

Jill, For one, the spread. On 10 puts, you'd pay minimum 1/4 point ($250) in (to buy the ask) PLUS commissions, and minimum 1/4 (another $250) to sell at the bid, plus commissions. Higher priced puts have largers spreads. Not only that, since the VIX is so high, the puts are way overpriced due to volatility and will collapse almost instantly if you are wrong! So....that's $500 alone for the spread for a roundtrip transaction!! Then add option commissions on both side (say 45 each side) and you're at almost $600 before you've made a dime!! A short of the QQQs with a tight leash (stop) costs 1/16 to 3/16 spread (most likely 1/8 . Sometimes you can even buy the bid, and sell the ask!!) and a much smaller commission. AND......there's not time value erosion and NO volatility factors/spikes to deal with. AND...you learn how to short!! (valuble lesson!)) Steve