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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?


To: Bob Duncan who wrote (37023)1/27/1999 7:43:00 AM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 164684
 
One more question. Since you are obviously an experienced investor, have you ever
made use of this option or do you typically stay away from this sort of leverage?


Bob,

I started using this form of leverage last fall since my short on AMZN had wiped out a lot of equity. The short against the box position was far safer and I do not believe really caused any risk beyond the normal trading of a highly volatile security.

I would be interested in your opinion on this,
particularly if you think this is a good option instead of buying options on an equity.


I almost always sell options when using them. The premiums are high for buying. The short against the box is much better for the use you are describing.

Glenn