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Conference nyoss1::market_investing

Title:Market Investing
Moderator:2155::michaud
Created:Thu Jan 23 1992
Last Modified:Thu Jun 05 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:1060
Total number of notes:10477

507.0. "What is S&P 500 index ?" by COFFEE::CHEN () Mon Jun 28 1993 15:42

    Hi,
    
    Does any one out there have experience in calling or putting S&P 500
    index? Recently a friend of mine asked me about this investment, and
    what is the best strategy to be a winner in this game.
    
    All your inputs will be appreciated.
    
    Regards
    
    John
T.RTitleUserPersonal
Name		DateLines
507.1Approach with extreme cautionKOALA::BOUCHARDThe enemy is wiseMon Jun 28 1993 20:4811
    
    Purchasing "index options", i.e. calls and/or puts on things like the
    S&P 500, is an extremely high-risk game which I don't believe can
    properly be called "investing", at least not for small players. 
    "Speculation" or "gambling" is a more accurate term.  Big potential
    profits, a very real danger of taking a 100% loss, and direct
    competition with the "big players".
    
    Selling index options (naked options, that is) can be even worse, with
    potential losses that can strike fear into any but the largest of
    traders.
507.2Afraid of SPDRs?AOSG::GILLETTBut that trick never works!Sun Jul 11 1993 05:1611
re:  .1

Whilst there's no disputing the wisdom in .1 as regards options,
what about index plays using SPDRs (ticker SPY on the AmEx)?

This strikes me as a way to play the index without the dangers
of options.  Like the market, buy SPDR long...hate the market,
short it.

./chris