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

To: J. P. who wrote (22112)	12/24/1998 8:12:00 AM
From: IQBAL LATIF	Respond to of 50167

No I don't think that index puts give you that kind of return. You are right about winners call options you can see some great returns however index puts help you greatly if something inevitable happens, I have learnt after a lot of years in this market that one should be prepared for a trade contrary to conventional wisdom, in a trending market even pit guys are brushed aside as they have been now but somewhere along the line sanity returns and these very same index puts become a great performer, a sophisticated investor can use these puts as a proxy hedge to sell naked out of money puts on individual stocks, you can always recover your cost from all kind of stuff but one needs to be nimble and should not be frozen in time when pulling the trigger is required..