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

To: energyplay who wrote (1512)	3/13/2001 5:35:41 PM
From: Tommaso	Respond to of 23153

Of course the puts I am holding go on until December of 2002. I don't know what the original writer got for those Dow puts, but I can't make much sense out of it, except that there was a presumption that was based on some 14 years (or even 19 years) of seeing that the Dow was always higher over a two-year period. I haven't checked to see how much an offsetting call would cost, or tried to figure the implications of going long the index (DIA) while buying a put as insurance. From my point of view, as a person who thinks it likely that the Dow will continue down and stay down for some time to come, the puts look like a reasonable bet. I'm not going in that deep on them, and can take a short term loss and reestablish the position for December of 2003 if I am wrong. later this year