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Strategies & Market Trends : HEDGES -- Ignore unavailable to you. Want to Upgrade?

To: IKM who wrote (3)	10/25/1997 1:36:00 AM
From: FDHIII	Respond to of 29

Short term, Ikm I feel AOL is going to keep going up like it has, but long term this stock is the right one to hedge. By my calculations it has a value around 20, well, well, below it's current 87. Alot of people are going to loose their ass on this one, won't it be nice. Just an idea. Franz

To: IKM who wrote (3)	11/3/1997 1:01:00 PM
From: Laird Durham	Read Replies (1) \| Respond to of 29

I think it would be very hard to find shorts as a hedge against a megacorrection. A better idea there might be to buy puts for one of the index funds, as suggested in another reply on this thread by Goldbug23. I went short with SUNW, INTC, HRC, LRCX, and T in September and early October, based on technicals at that time, and I'm long on others in the same industries. I closed all the short positions early Tuesday as fast as I could get through to Schwab -- trying the web, Tbroker, Equalizer, and POTS. The delay cost me plenty, but I did post a trading profit overall. For the moment, I don't like the technicals on those five for shorts. But, feeling exposed with only long stocks, I then bought DJX puts just in case this bounce turns out not to be a resumption of growth. I am looking now for some good short candidates, but don't have any at this time. Nobody knows what the market is going to do, so I think hedging is the only prudent way to play, unless you have a very long time horizon.