Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: KHS who wrote (19556)	8/27/1998 6:20:00 AM
From: IQBAL LATIF	Respond to of 50167

In times of extreme volatility like this one needs to be pre- positioned earlier on- if on day like today you will intiate a position you will end up paying a heavy premium, I would like you to buy some S&P put options Dec contract say 1000 strike 2 of them they will give you slightly higher protection than size of your portfolio under 980 that would translate to nearly 7800 on DOW and if go their you may be able to get out of it with a decent return, mind you since this is an insurance policy against decline you will need to understand that as volatility disappears the premiums also vanish so for you the best course would be to first budget the amount you want to set aside for peace of mind and than act for long term- ofcourse it is always helpful to take a chance and get out of the protection on supports like 1055- expecting a rebound.. However undoubtedly you cannot expect to get a perfect hedge but if you wish to be invested in the market this is the best way..