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Technology Stocks : Loral Space & Communications -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Proofsheet who wrote (2572)	4/9/1998 5:25:00 PM
From: Geoff	Respond to of 10852

Re: "buy puts for short term drops" I have been thinking about this as well, and I am not sure what strategy I'd use to protect my profits. Normally when you are up 100% on an investment you sell out and walk away, but not with LOR, IMO. So I too have been thinking about buying puts, but am not sure where in the world to buy them. I usually don't buy puts, unless I have a real reason, and really don't feel like using money to play defensively. I am not sure what your risk tolerance, or others' on this thread, but mine is pretty high due to my age. I find it more desireable to spend that money simply add to my position on short term drops, or buy some more G*, though I see where the puts could come in handy. I am still a novice when it comes to options, so I will yield to someone who is well-versed in this topic. geoff

To: Mr. Proofsheet who wrote (2572)	4/9/1998 5:27:00 PM
From: Snake	Read Replies (2) \| Respond to of 10852

I am considering either puts as a hedge or possibly a straddle or strangle type strategy to protect myself for the 2nd half of the year, primarily the Zenit II launches. The straddle or strangle strategies would involve buying both puts and calls. I am considering this because I think the stock will move in anticipation of and after the Zenit II launches, the question is will it move up or down (will the launch be successful or not). Would also expect some profit taking for people not wanting to risk these launches as well, so we could see a decline in June/July as this happens. One of the keys here is not to set it up too soon or you erode your put premium if the stock say takes off another $2-$3 the next couple of months. But also have to consider the volatility portion of the put price too. A lot of variables here. Still thinking the options over. Once G* has its satcom's launched, I probably will not use puts and let it ride more. I see the Zenit's being Loral's largest risk right now.