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Strategies & Market Trends : The Millennium Crash -- Ignore unavailable to you. Want to Upgrade?

To: Arik T.G. who wrote (5252)	6/8/2000 5:32:00 AM
From: smolejv@gmx.net	Read Replies (1) \| Respond to of 5676

<In a downtrend, however...> the increased volatility strikes too, means the options are expensive to buy in the first place (My experience so far). Means it's sensible to go into/stay in the money. Which makes options a questionable proposition - owning stock = "call with strike = 0, due date = now", iow pretty close to options deep in the money with no tau. An elegant way to rationalize my losses (g). dj

To: Arik T.G. who wrote (5252)	6/8/2000 9:37:00 AM
From: LLCF	Read Replies (1) \| Respond to of 5676

Calls and puts....... IMO you have to be very careful in generalizing about options: <In an uptrend, the only way to make some money on puts is to short them on every dip. > You have to be very careful with this type of thinking... when the market has that warm and fuzzy feeling options will are often WAY too cheap and selling puts may not be as good a strategy as owning the common. Untold millions has been given away to market players by 'buywriting' institutions over the years. DAK