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Technology Stocks : Ascend Communications (ASND)
ASND 202.23-4.2%3:59 PM EST
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To: Glenn D. Rudolph who wrote (16361)10/5/1997 3:22:00 PM
From: Nazbuster   of 61433
 
"If the loss on the option hits 25%, I close the position and move on."

Glenn, thanks very much for your detailed response. Your answers help put a practical perspective into what otherwise is all too theoretical.

With events like the ASND warning, can't you lose 80% in a matter of minutes on sold puts? What kind of cash position do most brokers require to sell naked puts? (I assume this works best on margin accounts in order to handle the price swings.)
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