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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Kid Rock who wrote (10427)	12/7/1997 4:16:00 PM
From: Barbara Barry	Read Replies (1) \| Respond to of 18056

Tom, I picked a Dec. oex put at 440 and I paid $2 1/2.If you open a put positon, you are betting the stock or an index is headed lower. Each contract is 100 "shares" so one contract costs $250.Well now the OEX is at 473.53...not such a smart bet! If it drops down closer to 440 or below...I win! But if we go higher I lose!These contracts expire the third Friday of the month, but I won't hold that long. Hope this helps as this is a very simplistic explaination. It is almost always just a BET and especially if you are not very nimble, the odds are against you. Regards, Barbara ,