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To: chic_hearne who wrote (38303)	11/27/2000 11:51:51 PM
From: Charles Tutt	Read Replies (2) \| Respond to of 64865

I definitely am missing Ken's point. If they're short S&P, and it's a hedge, then presumably they're long something else that's related (perhaps S&P stocks). So why focus on the short side? Why not conclude they must be long huge quantities of stock because they anticipate it will rise, and are short the S&P as insurance? And if my scenario is in any way correct, are they right about the long position or the need for insurance? And isn't the net all that matters? In fact, does even the net matter? If the net is only a small fraction of the total outstanding positions, how can one ascribe much meaningfulness to it? It's a bit like ascribing huge significance to a 500 vote difference in a Florida election that is in fact a tie within the margins of error of the voting process <g>. I really would like to understand. I don't profess to know anything about derivatives. JMHO. Charles Tutt (TM)