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To: SliderOnTheBlack who wrote (30705)	10/14/1998 2:21:00 PM
From: upanddown	Read Replies (2) \| Respond to of 95453

For those convinced that there is little downside left in this sector, selling puts for some of the sector leaders might be the way to go. The put premiums are pretty rich in these shaky times. One example would be the DO Jan 20's selling around 1 3/4. If you are right and DO rises, you either buy back the put at a gain or pocket the premium. If you also hold DO stock long, then your cost basis is reduced by the amount of the premium. If you are wrong and DO declines, you either buy back the put at a loss or have DO put to you in Jan at an average cost of 18 1/4. Even the VTS Feb 10's are selling close to 1 1/2. Selling puts is frequently thought to be wildly reckless and covered calls very conservative but they actually have similar risk/reward scenarios. Must be that "nekkid" thing makes people shiver <ggg>. I'd be interested in hearing from anyone selling puts in this sector. John