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Strategies & Market Trends : Shorting SPY for fun and profit. -- Ignore unavailable to you. Want to Upgrade?

To: tom pope who wrote (9)	11/2/1997 4:00:00 PM
From: Esteban	Respond to of 346

Tom, My feeling is the portfolio protection you are hoping for is absolute only as the expiration date of the leaps nears. For severe corrections in the near term, the prices of dec 99 contracts probably provide protection to a much lesser extent. If it's a prolonged bear market you are worried about, this seems like a good strategy. 4% per year doesn't sound so cheap when you think we can have a 25-30% correction in the near term, and by Dec 99 be back to 20% above the previous high. I have no experience in options, so this is all suppostion on my part. It should be a simple exercise to check the price of the dec 99 leaps before the recent correction, and compare them to the present price, and see what percentage gain would have been realized from the current downtrend. Thanks for your reply. I understand the strategies presented here much after reading it. Esteban