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To: Lazlo Pierce who wrote (12179)	2/19/1998 7:32:00 PM
From: waverider	Read Replies (4) \| Respond to of 95453

Speaking of panic, I would appreciate some perspective on puts. I'm basically a stock and call buyer guy, but a little insurance at this point by buying some puts (say May 40's on CDG) may be in order. Never done it, but... So I buy 10 puts on CDG for about $5000 (I'm making a price guess here for illustration). The stock has to drop to $35 by expiration for the put to begin to pay off. On the other hand I could sell the put for a profit. If we drop into the bowels of hell...well, I've got a rope to save me. If CDG stays at $40 or goes higher, I've lost $5000 for the insurance since I don't have to actually sell my position and can enjoy further gains (unlike writing calls). So what say us? Diamond H