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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (1408)	3/12/2001 2:38:30 PM
From: Telemarker	Read Replies (1) \| Respond to of 23153

Hi Tommaso. Are your DOW puts American or European style? Being index options, I'll assume that they are on a cash settlement basis, but please correct me on that if needed. TIA

To: Tommaso who wrote (1408)	3/12/2001 2:41:43 PM
From: energyplay	Read Replies (1) \| Respond to of 23153

DOW 140 puts - YDXXJ - Bought one today. Looking to the DOW to go higher later this week. Want to get a better position. Will probably then pick up some puts with strike price at 108 or 116 - Buying insurance. Also, I may start trimming my energy positions if they don't rise soon. The level of general worry is high, and looks like it may go higher in the comming months. Japan, consumer credit, corporate credit, and tech p/Es are still way too high. If this quarter's tech pre-anouncements are bad - wait till we see the ones for June & September for Q2 & Q3. Best of Luck to everyone.

To: Tommaso who wrote (1408)	3/12/2001 2:57:22 PM
From: Ian@SI	Read Replies (1) \| Respond to of 23153

It isn't obvious to me why one would choose to buy a deep in the money DOW LEAP put for protection against a fall. 1. It costs much more than an 'at the money' or slightly out of the money PUT; yet doesn't give any better protection unless the drop is rather modest. In which case, why bother risking all that time premium. 2. The DOW has been the most stable of the major indices. Thus buying a DOW PUT provides the least protection should this bear continue for an extended period. Both time and the long term trend are working against the PUT holder. Puzzled, Ian.