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To: mike iles who wrote (32778)	5/3/1998 7:14:00 PM
From: Patrick Koehler	Respond to of 53903

Mike, I am often tempted on those low prices of the out-of-the-money options. But the way I look at it, is if I have say $5000, I could buy the leaps and wait 8 months on the one play, and maybe get a triple. Or I can buy options twice a month for 8 months. If I made 20% on each, compounded 16 times, the $5000 becomes $92,000. At 10% per period for 16 periods, I would still have $23,000. My objective is 20% per month on my account, minus my living expenses. Parick

To: mike iles who wrote (32778)	5/3/1998 10:55:00 PM
From: Skeeter Bug	Respond to of 53903

mike, david et al do make a good point about oftm puts. mu is nutso so the probability of a big fall is small. we've seen one big extended fall in nearly 2 years. granted, that was from $60 to $22 with few stops inbetween, but it was only really one. in hindsight, i would have been better off buying my last set of puts closer to in the money or maybe slightly in the money. but, as larry so eloquently points out, what good is the past ;-) maybe a better approach is to buy a combo - 1/2 of each. if it really runs then you make your bucks but if it goes down a little you have some extra to play this sardine one more time.