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Technology Stocks : America On-Line: will it survive ...?
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To: Rajiv who wrote (3139)5/16/1997 4:08:00 PM
From: chenys   of 13594
 
Naked put (call) has limited (unlimited) loss. One only writes put when he thinks the bottom has been reached. Writing put for high flyers is definitely not a good stratege. You'd rather buy calls and puts in that case. Besides, you can also hedge naked puts with lower puts as the market tanks, anticipating it to bounce and then you close the lower puts.
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