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Non-Tech : Dorsey Wright & Associates. Point and Figure -- Ignore unavailable to you. Want to Upgrade?

To: XOsDaWAY2GO who wrote (9039)	8/24/2000 6:14:37 PM
From: Oral Roberts	Respond to of 9427

<Would you please tell me why buying puts would be better in this case of low VIX.> I'll take a stab at it. Low VIX means low volatility which equates to a much lower price on anything you write. Since you are wanting to write you must think the stock is going down or range bound because of the low VIX you can buy puts with very little premium built into them, quicker profit if things go the way you want. When volatility is high a covered call ATM that you write now for 2$ might go for 5$ then. Jeff Roberts

To: XOsDaWAY2GO who wrote (9039)	8/24/2000 6:44:11 PM
From: Tommy Dorsey	Read Replies (1) \| Respond to of 9427

Because Barbara, the premium is low. Low volatility low premium in general. Therefore buying is preferred to selling. And if you think selling uncovered calls is a way to go short equities, think twice. The risk is unlimited. When it is not hurricane season and there are no hurricanes is sight, hurricane insurance is cheap ie. market rising and no trouble in sight. When the market drops or there is a hurricane, hurricane insurance becomes expensive, ie. VIX at a high level. t