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To: prakash who wrote (7765)1/7/1998 11:50:00 AM
From: Jon Tara  Respond to of 13925
 
Prakash, unless you have so many holdings as to make it impractical to buy individual puts (or sell individual calls) you are better off with the equity options than with index options. Index options are significantly more expensive (higher premiums, as a % of underlying) than equity options.

Of course, if you are in a position to sell index calls, that might be the way to go - collect the additional premium of the index call vs. equity calls. But you will probably have to qualify to sell naked calls, unless your holdings exactly match the index and your broker is willing to go along with that (not likely).