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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Bull RidaH who wrote (17988)	5/6/1998 6:06:00 AM
From: Jack Clarke	Respond to of 94695

David, staying away from puts. I agree this is generally good advice. But what about put spreads? Yesterday, for example, even in a down market I was able to buy the OEX July 500/525 put spread (short 500/long 525) for a little over 6 points. That's a 25 point spread for 6. I don't think that's a bad risk/reward ratio if you want to make a bearish statement. And you have until July exp to see if it happens. I got killed trading S&P futures last year, watching 100 point ticks and having to cover too early. With the put spread, you don't have to have your eyes glued to the screen. You could also sell call spreads, of course. Jack