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To: Danny who wrote (2714)5/14/1999 1:52:00 PM
From: Gerald Walls  Read Replies (1) | Respond to of 15145
 
Flipped half at 21-9/16. Will hold the other half for a while.



To: Danny who wrote (2714)5/14/1999 2:39:00 PM
From: kcmike  Read Replies (1) | Respond to of 15145
 
Danny,

I agree with you to a point re: hedging. But if you want to buy puts several months out for a stock like CMGI, you are better off being long and taking your chances, IMO. For example, with CMGI at about 227, it will cost you about $52 for a SEP 220 put.

I do that with stocks like CSCO, but just too expensive with CMGI. Probably better off selling OTM covered calls.

How do you hedge the high volatility stocks?

Thanks,
Mike