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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: Rich Dondo who wrote (28691)	8/5/1998 6:15:00 PM
From: Craig Freeman	Respond to of 33344

Rich, a couple years back I sold MSFT puts and simultaneously bought MSFT calls. I made a mint but I did not sleep well at all Someone calculated that it takes ~$2 is profits to have the same emotional impact as $1 in losses. And when you lose more than you originally invested, the ratio gets even worse. In short, you had better be pretty darn sure that a stock is going up before you make such bets. Or have a very strong stomach. Craig

To: Rich Dondo who wrote (28691)	8/5/1998 8:29:00 PM
From: Dale J.	Read Replies (1) \| Respond to of 33344

sell the puts, take the premie and buy calls with it....this is infinite return , if you are correct, if not you end up with a dog and a great tax refund. well 3k deduction anyway.. Rich, I'll just assume you are joking. That is not infinite return, unless you are infinitely correct. Selling Puts is a long position. Buying Calls is a long position. You would have a heck of a time making money on NSM with those long positions. The stock has been decimated. Now I suppose you could look at a chart of NSM and specify certain small time frames when your approach would have worked, but for the most part when a stock drops from 42 to 11. You won't make money selling PUTS and Buying Calls. PS: I have no position in NSM and I wouldn't go short at this point. But good luck to the longs, they have had enough. Dale