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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Mama Bear who wrote (61111)	10/22/2000 3:24:54 PM
From: Prognosticator	Read Replies (1) \| Respond to of 122087

If you're thinking of short common/long calls you may as well just go long puts. It's the equvalent risk/reward with less slippage and put premiums are generally less than call premiums. I was thinking of buying out of the money calls, difficult when the stock is at an all time high, since they don't open up new contracts until a price has been achieved (correct me if I'm wrong here). So the approach would be (for example) wait for a drop to $80, go short nx100 shares simultaneously long nx$90/May2001 calls, paid for with the proceeds of the short of course. Downside risk limit nx$1000. Wait for a top followed by a $10 slide to initiate so if it got to $120 the short point would be $110 etc. I wouldn't be surprised to find that this cost the same as a $80 put, but the premiums on the longer term HAND puts are so high that I don't see much room for profit. Plus you have to spend real money to buy a put :) Also, I'm a real novice at options trading, and my previous experience has been that those who write the contracts know better than me at least 90% of the time. So any guidance on how to go short and remain calm is appreciated. P.