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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Nadine Carroll who wrote (28100)	5/11/1998 10:37:00 PM
From: Kerry Phineas	Read Replies (1) \| Respond to of 132070

Nadine, some people caught the ride from 60 to 22. Not all the puts necessarily expire worthless.

To: Nadine Carroll who wrote (28100)	5/13/1998 12:03:00 PM
From: Knighty Tin	Respond to of 132070

Nadine, Because I don't know how crazy the bulls will get before they finally open their eyes. And a short sale can cost me a lot more money than a few bad put expiration dates. There is also the fact that when I win on puts, as I did from $95 to $17 on the stock, and several times from the 40s to the 20s more recently, I win more than I would from a short sale. Even using my 90/10 technique. So, much lower risk and potentially higher return are the attraction for puts over short selling. In fact, I developed my 90/10 and thirds options techniques due to the huge risk in selling short and being caught by the herd. With puts and a disciplined approach, if you are right on the fundamentals, you eventually get rewarded big time. With short selling, you can be put out of the game before you win. Just a bit of history. I started buying puts on Mu this cycle when it was at $63. It subsequently went to $95. That would have been too much pain for me, in the size I was playing, if I had used short sales. By using puts, I was able to live to play another day and eventually Whittington and Kurlak and Vinick and the Boise Bandits were proven frauds and I made a ton. I would have hated to "cut my losses" on a short sale and missed that move. MB