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To: t2 who wrote (486)	5/19/2000 5:45:00 AM
From: bela_ghoulashi	Read Replies (3) \| Respond to of 10876

Bland has a question regarding puts. He is considering buying some June NTAP puts as a bit of a hedge. Comparing prices, he notes he could buy June 57 1/2's for around $3. Further down in the bargain basement, there are June 47 1/2's for less than $1. So bland could presumably buy 3 times as many of the June 47 1/2's as the June 57 1/2's for roughly the same outlay. His question is: would this be worth doing, by any stretch? Would the 47 1/2's behave relative to the 57 1/2's in such a way that it could conceivably be a benefit to have 3 times as many of them? If so, at what point would the lines cross? In other words, in what range would 57 1/2's appreciate more than 3x as many 47 1/2's, and then at what point would the 3 47 1/2's become worth more? In other words, what would a graph of the two lines look like if they were plotted against each other? Bland has only bought puts twice before and on both occasions they were much closer to the money. He is looking at this particular trade as "comets possibly hitting the earth and destroying the dinosaurs again within the next 30 days" insurance, not something he wants to commit a lot of cash to. Any light that could shed on the issue would be greatly appreciated.