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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (44492)	6/2/1998 11:01:00 PM
From: peter n matzke	Respond to of 58727

the funds are from Rydex, Potomac, and ProFund. i remember hearing or reading about a mutual fund that bought S&P futures, and sold equal quantities of at the money current month SPX calls. i don't remember if they sold puts as well and then hedged with futures option contracts. Bottom line is they run a delta neutral fund and pick up the premium on the option contracts. They make a bunch of money in neutral markets, and very little money in strong markets (up or down).