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Technology Stocks : Intel Corporation (INTC)
INTC 35.53-1.1%Nov 14 9:30 AM EST

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To: carl a. mehr who wrote (90353)10/15/1999 9:20:00 AM
From: John O'Neill  Read Replies (1) of 186894
 
Carl...a naked put is an uncovered option....

To puts clothes on it one needs to sell covered calls or puts which means they need to own a like amount of the underlying stock.....long for calls and short for puts.....this is a form of guarantee that one can cover one's losses...if you short the stock and sell puts, you get the premium on the put, but can't lose more than that because you have the stock short to balance any big loss in the put if the stock crashes....

a brokerage co screens people for big bucks before allowing them to write uncovered calls or puts.....the potential losses and profits can be staggering with writing options on stocks you don't own....
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