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Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Jesse Schulman who wrote (10872)	3/7/2004 11:17:10 PM
From: Rocky9	Respond to of 52153

More on selling. I think that I will use puts much more often. In the past, I have used covered calls to add income and give some downside protection. But as my portfolio gets more concentrated in stocks that I consider to highly volatile (and perhaps overpriced), puts surely look more attractive. They are clearly expensive insurance, but I have always had trouble selling my winners, and they have tended to continue to appreciate - to my benefit. Clearly, my SEPR experience has affected my analysis. The puts gave my enough comfort to keep an overweight position, and even expand it. There are few binary situations like SEPR was in where the need for insurance is so clear. But the bubble burst of 2000-02 shows the need for protection. Since my portfolio has several other high beta stocks (outside of biotech), I think that I will start spending money on insurance. JMO.