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

To: yard_man who wrote (9212)	4/1/1998 5:04:00 PM
From: rhet0ric	Read Replies (3) \| Respond to of 13594

I won't short and you really shouldn't. I like to buy puts fairly near the money 2 - 3 months out. The trouble with options (I keep turning this over in my head) is that timing is important, whereas with a straight short I can get in and just wait it out. It's quite possible that it'll take a year or even longer before AOL tanks. I wouldn't want to spend a year with wasted options purchases. I also think that there will be a couple of tremors in the stock price before the earthquake strikes. I really don't see it switching from a constant rise to a sudden drop overnight. But the time-lag between the tremors and the earthquake may not last long, perhaps a month, or a quarter at most. If that's the case, and we get tremors before the quake, what would your options strategy be? (I'm trying to understand options better, so any remarks are very much appreciated). rhet0ric