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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Jason Cogan who wrote (9050)	3/25/1998 11:04:00 PM
From: Kerry Phineas	Respond to of 13594

Jason, thats good advice. I don't know anywhere near as much as you do about derivatives, but I've gotten the same advice from people who do know a lot about options. (also, wouldn't going synthetically short technically be selling the call, buying the put, and borrowing the present value of the strike price? Taking an exam on options, so I'm curious.)

To: Jason Cogan who wrote (9050)	3/25/1998 11:15:00 PM
From: Gary Korn	Respond to of 13594

Jason, 1. Thank you for your helpful comments. I've bookmarked your profile as I can always use help from a former derivatives trader (from GSCO no less!) 2. I have a put writing program for my bullish positions and I do this quite regularly. Great way to take in premium month after month. As I short infrequently, I forgot that as the opposite of a bullish play, I could simply write calls, take in the premium, and just live with that. The premium one takes in creates considerable upward protection. Excellent point. Thanks again and I hope to hear from you in the future. Gary Korn

To: Jason Cogan who wrote (9050)	3/25/1998 11:36:00 PM
From: Investor-ex!	Read Replies (1) \| Respond to of 13594

Jason, I disagree. Selling puts against a short position is actually somewhat "safer" than an outright short position, just as selling calls against a long position is "safer" than a straight long position. Furthermore, at these nosebleed levels, the odds of a covered put position are actually in one's favor, as some sort of correction is long overdue. Yet if the stock continues to rise, buying back the puts will cushion the loss from the rise. Yeah, you give up a lot of "potential" upside on an outright short position from a spectacular crash but, even in that case, you've got a very reliable profit of short price - out of the money strike + premium collected. However, judging from the Street's love affair with this stock, I'm really beginning to think a spectacular crash may not be in the cards, even if the overall market goes into the crash mode, due to the "growth story" this stock carries. Please elaborate further on why you believe covered puts are an inferior strategy. Thanks.

To: Jason Cogan who wrote (9050)	3/26/1998 2:16:00 AM
From: White Shoes	Read Replies (1) \| Respond to of 13594

Jason, I started a thread for AOL options. I was interested to hear your view that selling calls is an OK strategy and that you get a 'head start' due to the rich premium...a view I espoused as well and was criticized for...anyway I really think we could use your expertise on this my friend, I hope you will keep posting. Try dropping in once in awhile on the AOL Options for the Bearish thread! If you were going to sell calls what would you do and when would you do it? Subject 19537