SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (43570)3/12/2001 2:51:05 PM
From: Ian@SI  Read Replies (1) | Respond to of 70976
 
OT to G. re DOW LEAP PUTs,

G.,

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.



To: Gottfried who wrote (43570)3/12/2001 2:57:51 PM
From: Jerome  Read Replies (1) | Respond to of 70976
 
Dow Puts... The buyer is a long term bear... He'd have a hard time on this thread. His bet is that things are going to get a whole nastier for the next couple of quarters. When the companies report earnings for this quarter, their outlook for the next few quarters will decide how low we go.

Buying at these levels is like looking for airpockets on the Titanic. And I consider myself an optimist.

Jerome


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News