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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: William H Huebl who wrote (25918)	8/31/1998 11:39:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Bill; With the VIX high you know other options are high , and that's when the big arbitrage boys like to sell them. They will sell you puts all day long, ( if the stock falls they short it ) the put closes the short and they pocket the premium. These writers never buy their puts back unless the stock goes up, and they get it back cheap. The little guy has to sell his put to another player who wants to go short, of course he can "put" the stock to the writer, who is already short the stock. They are writing both sides of the street, and loving the volatility. The writers always have the edge & that's why they invented them. Jim