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To: Lazlo Pierce who wrote (31011)	3/22/1998 4:39:00 PM
From: Zeev Hed	Respond to of 53903

Dave, but, look at the possible leverage, if Castillo gets his wish and short do not start covering at the 28-30 range, when the stock is down to the low of 22 you'll be making oodles of moula. Of course there is a big IF there. Zeev

To: Lazlo Pierce who wrote (31011)	3/22/1998 4:51:00 PM
From: DavidG	Read Replies (1) \| Respond to of 53903

David A little lesson in buying puts for me, and anyone else interested. I bought the April 30 puts about 6-7 weeks ago, when MU was selling for ~ 35 3/4, the price I paid was 1 9/16. Today, with the stock selling @ 30 1/2 , the puts are now 1 11/16 x 1 3/4. So the stock has fallen 5 1/4, and the puts have increased by ~ 3/16. Talk about not taking advantage with out of the money options! Thank you for your comments, Pat and I have been trying to tell the forever bears for some time that out-of-money puts are a foolish bet but they just don't listen. ..SB bought his MUPFs for about 1 5/8 if I recall and showed him how if he kept his PUTS until expiration the stock would have to be at 28 3/8 for him to break even. They just don't listen but maybe you can help some others who are just interested in making money instead of losing it.<g> I believe it was Tim who bought in-the-money PUTS of MUOH for 4 1/4 and just sold them for around 9 for a nice profit during this down turn...Now he did pick an earlier month which carries more risk, but his gain wasn't that much more...Pick the timeframe that allows you to sleep at night. Good Luck Trading DavidG

To: Lazlo Pierce who wrote (31011)	3/22/1998 6:21:00 PM
From: TREND1	Respond to of 53903

david R There is a reason they call them "out-of-your-money" puts (g) Larry Dudash

To: Lazlo Pierce who wrote (31011)	3/22/1998 7:22:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 53903

david, options are a different animal. it is always ez to look back in hindsight and say, "what the..." if you think they are cheap now then you have the opportunity to buy a lot more. i'm letting mine ride right now. i had some txn puts that i bought at $3 3/8. i sold at $1 3/4 just before the asian crisis hit. poor performance, huh. they peaked out about 4 weeks later at $28. of course, when the specialist saw me sell my 3 contracts he took the stock down 40 points. i'll bet larry tipped him off. buying out of the money puts really means you expect to lose maybe 50% of the time (and wins and losses tend to come in spurts). when you win you have to hold for the triples and quadruples to make it worth your try. don't cry for my txn puts b/c i owned a double full portion of mu that quadrupled during the same time frame. this more than made up for 12 months of losses and breakevens on mu puts. this isn't something your avg day trader understands. i put up 1 portion to get 3-4 portions back. they put up 30 portions to get 1/2 a portion. they are like attorneys. they don't know how to lose battles to win the wars. to them it is the batting percentage that matters. to me it is total return that matters. they think kerry is dumb for playing puts when his portfolio is up 200-300%. so be it. kerry's batting percentage is lower than theirs but he hits a lot more home runs. he also wins the games :-)