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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Stephen M. DeMoss who wrote (68516)2/4/2001 8:44:37 AM
From: marginmike  Respond to of 99985
 
Msft at 60 or so. if you sold 1 year out you would be down 10pts with 90%premium gone. At worst you would be down 10pts. Alot better then buying at 100? tHERE IS ALWAYS RISK.



To: Stephen M. DeMoss who wrote (68516)2/4/2001 9:06:35 AM
From: lurqer  Read Replies (1) | Respond to of 99985
 
I'll keep thinking here about it...

Be sure to consider the way being short puts in a down market can cause your margin cushion rapidly "evaporate".

lurqer