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Technology Stocks : America On-Line: will it survive ...?

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To: Stingray who wrote (3136)5/16/1997 9:25:00 AM
From: Rajiv   of 13594
 
In the 1987 crash lot of naked put sellers went bankrupt.
As you rightly pointed out a naked put gives you a high probability (> 50%) of a small gain but a small probability of a large loss. You make few $ each time you write the puts but you might lose everything and more if there is a crash (that is if you do protect yourself)
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