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Technology Stocks : Disk Drive Sector Discussion Forum -- Ignore unavailable to you. Want to Upgrade?

To: Pierre-X who wrote (2270)	1/14/1998 2:03:00 PM
From: nonzeroa	Respond to of 9256

<<It seems as though you're using puts as a leveraged long position.>> Actually I consider putting on a long position equal to the delta of the puts I write as an alternative (i.e. 10 contracts with a delta of .5 = long position of 500 shares). The bet I'm trying to capture is that the implied volatility is too high. I know I can capture it directly by shorting the underlying, but I usually restrict myself to stocks that I like having the equity exposure and don't hedge. Thus my dilemma determining what is driving my returns (still positive, but I'd like to risk adjust them somehow). <<Just think if you'd been a put writer on ADPT on the day it fell 40%.>> Kind of like selling the WDC 22.5 puts and watching it fall to 15 7/8?(<g>,:-() <<The only surefire way to know if it was luck or skill is if, in 20 years, whether or not you're a billionaire>>You'll be the first to know <g>. Unless someone objects, I'll continue this discussion via email as its probably not relevant here. I don't want to be accused of reducing the signal to noise ratio of this thread!