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

To: Investor2 who wrote (19882)	9/3/1998 1:42:00 PM
From: Nemer	Read Replies (1) \| Respond to of 50167

I2 --- I'll answer, even though you directed the question to Ike, with your permission ...... for if I'm wrong or putting words in his mouth, he'll have no hesitation about correcting me ....... ggggg you asked ======>Why buy 4 times the size of your portfolio? Why not just buy 1 times the size of your portfolio? just to use round figures, lets say that the 890s are approximately 100 points OTM ---- at 100 points out of the money they aren't going to react 1 for 1 with a move in the index and as Ike was recco this action as peace of mind insurance, rather than a strategic move for maximum profit , it will take probably more than 3 times and less than 5 times the value to provide insurance coverage for your portfolio... As I said, Ike (or others) will be quick to point out any errors in this post ....... gggg Regards ----Nemer