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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: vegetarian who wrote (7756)	12/3/1997 5:20:00 PM
From: Don Westermeyer	Respond to of 9285

I'll just add that options are good to use as 'insurance' with large stock positions. Generally I find fooling with options undesirable because of high commissions (although that's probably not a concern any more) and the large spreads associated with them.

To: vegetarian who wrote (7756)	12/3/1997 5:29:00 PM
From: Pancho Villa	Respond to of 9285

MC >>In general I agree that options, if used for leveraging profits can be quite risky, however they are a good idea in certain situations.<< Your points are good ones. Still IMO people buy way to many put options for risk reduction which also limit return and generate substantial transaction costs. IMO, one should think hard obut one's own attitude towards risk and perhaps instead of for example using margin to go long and then buying puts, a better strategy may be to just not use margin or reduce market exposure by going short or holding bonds. Pancho