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To: bonnuss_in_austin who wrote (7149)	7/29/2000 4:32:26 PM
From: Oblomov	Respond to of 436258

bia, My current hedging approach: At minimum, consider equity collars on your long positions (sell OTM covered calls, using proceeds to buy protective puts), but if you believe that your positions will outperform the market, then consider buying puts on a "market proxy" such as CSCO or YHOO. I stay away from poots on the QQQ/SPX since the premiums there are too high. If you are bearish on QQQ/SPX, shorting is preferable to options for this reason... Don't be hesitant to hedge your short positions as well. Although I commend you for wanting to hedge (a concept with which few investors are familiar), be careful... a bear market is unlike a bull market is several ways, the most important being the low volume and lack of liquidity. It can be emotionally draining to trade in a bear market for these reasons. Cash is sometimes the best option (and I'm not saying that in jest).