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

To: PaperChase who wrote (32067)	9/2/1998 10:49:00 AM
From: Knighty Tin	Respond to of 132070

PC, I am not buying index puts on banks. I own puts and have owned puts for a while on the two most overpriced dogs in the sector, Chaste and Shi--YCorp. They have both been wonderful to me, though I am kind of ticked off about CMB's split. When I say I bought my last third at $153, I feel very smart. $76 1/2 just doesn't give me that buzz. However, the last third of Cci puts was purchased at $175 and that still feels warm and fuzzy. <G> Of course, I was a wee bit sickly when the stock hit $182 and I'd already shot off all my bullets. But, it isn't $182 today. You have discovered one of the rules about equity puts. During moves down, they lose pure premium faster than Clinton can remove his trousers. It has always been that way. BTW, it is just the opposite with fixed income options. Calls are the ones that their pure premium quickly. Yet another reason to swing for homeruns in equity puts. MB