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To: Tom K. who wrote (129507)	5/31/1999 5:13:00 PM
From: Don Martini	Respond to of 176387

Good Evening, Tom K! I apologize for this tardy response. You asked what went wrong with the the strategy of shorting puts. When you're short a bunch of put contracts in a down market every day brings bad news, even tho you can roll them out and down. If you also sold the calls, you'll have approximate breakeven no matter which way the stock moves. But my experience is the stock can do a snap turn and go up again to surpass its former highs, so I cover the short calls with stock. The numbers work well, too. Take a look for yourself, Tom, by calculating the net price of shares after you deduct for a straddle. Then if the stock plunges you can close your calls for a nice profit and sell them again after the premies are higher when the stock rises. You do the same with the puts, close them when the stock reaches a high; sell them again after it dips. Best regards, Tom! DOn