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To: James A. Shankland who wrote (29233)1/3/1998 3:00:00 AM
From: muleskinner  Respond to of 61433
 
<For those of us with flawed foresight, there are various hedge plays that mitigate risk in
exchange for reducing upside potential. Buying protective puts is such a hedge play, but,
in my opinion, rarely a good one. The people writing those puts are not in the charity
business; nor did they just fall off a turnip truck. The puts are priced accordingly.>

I agree holeheartly---if we all had foresite, we'd all be rich.
Muleskinner



To: James A. Shankland who wrote (29233)1/4/1998 3:03:00 PM
From: Glenn D. Rudolph  Respond to of 61433
 
Buying protective puts is such a hedge play, but,
in my opinion, rarely a good one. The people writing those puts are not in the charity
business; nor did they just fall off a turnip truck. The puts are priced accordingly.


That is for sure. I cannot tell you how many puts I have written over the years that expired worthless to the owner. 1997 was the only exception.

Glenn