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

To: Gary Korn who wrote (9074)	3/27/1998 1:44:00 PM
From: Steve Robinett	Respond to of 13594

Gary, <<total premium from 12 monthly puts exceeds that of 1 leap put. Hence, I prefer writing puts 12 times and taking in more total premium.>> Of course, I agree. If what you are doing is premium capture, the old rule of "write nearby" applies. We were talking about a synthetic short--writing a call and using the money to buy a put of the same strike and expiration. During the life of the options, this will behave just like a true short position. Short positions often take some time to develop--overvalued stocks tend to stay overvalued for quite a while--and a synthetic short position using leaps gives you up to about 2 years in time. Best, Steve