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

To: Skeeter Bug who wrote (28973)	6/12/1998 10:43:00 AM
From: Knighty Tin	Respond to of 132070

Skeets, that is one of three reasons why I use long puts instead of shorts. The other two are: 1. You cannot make more than 100% on a short sale, while you can make several hundred percent on long puts. Also, you can lose more than 100% on a short sale, so the risk/reward is askew. 2. You don't need an uptick to buy a put. I feel sorry for the guy. I got zapped selling short on Micron Tech, no less, two chip cycles ago in the mid-1980s. I was right, nearly perfect, on the fundamentals, but the bulls refused to believe for a long time. There was no history with DRAM back then, so the bulls didn't understand that they were in glut. However, though I knew about puts, MU did not have any. So, I shorted the dog and watched it rise by nearly 50%. In the face of lousy fundamentals. Similar to what it did during the Kurlak Fantasy/Dram Scam of last year. With puts, you bitch and moan and shake your head. But with shorts, you cry and make excuses to the landlord. <G> BTW, my puts on IBM saved my hide until MU got real. But I took profits way too soon once my MU short made some. Panic will do that to you. MB