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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (79868)	4/18/2000 6:35:00 PM
From: Zach E.	Read Replies (1) \| Respond to of 132070

Mike, This may be a hard question to answer quantitatively, but how would you allocate $ in a "credit spead portfolio". In other words, with straight call and put buys, you put 90% into T-Bills or money markets, but I would assume that the percentage is lower for spreads. Also, how much risk is there in being assigned the (short) stock if it really skyrockets and the volatility premium on the short call vanishes? I guess with far-out LEAPS and such, it would really have to go way, way above the strike price, but I am wondering how much one needs to keep track of these types of positions.. By the way, I am sure that you'd like BGR to pay the taxes on the profits that you haven't made in options <g>. Zach