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To: brian z who wrote (22764)	10/23/1998 4:07:00 PM
From: Oeconomicus	Respond to of 164685

Brian, I think the point was to use your view on the value question as a guide as to which side of the volatility to play. In other words, if you think a stock is ridiculously overvalued (and assuming you are correct), it would be more prudent to play from the short side than the long. However, it may not be prudent to be short at all times, but rather to step aside when the volatility is moving it the wrong way and then jump back in when the momentum wanes. It would not seem prudent, OTOH, to play from the long side if doing so goes against your convictions about value as that would make it more likely that you would be caught on the wrong side when everyone else decides you are right. More importantly, though, if it keeps you from sleeping well, don't do it. Good luck, Bob