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To: Jeff Bond who wrote (7386)8/1/1998 1:00:00 AM
From: dave brown  Respond to of 14266
 
"I would like to hear any input on options and the stock price, how it compares, and how it is different than actual shorting of the stock."

The difference is a potential unlimited loss vs. a limited loss. If the stock goes to infinity and you have to buy stock to cover your short, you're in a world of hurt. Your maximum loss with the put is 100% of the premium paid.

Ideally, the stock will determine the destiny of the options. But, I am sure you can find historical examples of the "Tail wagging the Dog".

For academic purposes, some investors may try to obtain clues to overall sentiment by looking at put to call ratios.