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

To: upanddown who wrote (32746)	9/24/1998 1:46:00 PM
From: Knighty Tin	Respond to of 132070

John, the premiums are huge in an absolute sense, but not a percentage sense and definitely not for the volatility of the underlying indices. Yes, I do go fairly far out in strike price. You have to remember, a move down from 695 to 600 on the DRG is the same as a move from 69 1/2 to 60 on a common stock. If I were to buy right now, I would buy the Nov 650s for about $18 on the DRG and the Dec 360s for about $21 on the IIX. But I think it key that these things fit into 90/10 and thirds formats. If the absolute price is too much for the underlying 90%, then I recommend using individual issues. MB