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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 160.55-4.8%Dec 12 3:59 PM EST

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To: sergio who wrote (9314)1/18/2001 1:58:04 PM
From: Mr. Sunshine  Read Replies (2) of 10921
 
<<It would be nice to write a naked put.>>

I have no idea what your investment experience is, but I want to put (pun intended) out a basic warning to anyone who has never written (sold) naked puts. Be very, very careful. I do it, have made a lot of money, and lost some too. In a rising market it seems like free money. In a bear market you can really get burned by margin. There are all kinds of stories of large investors who were completely wiped out in the 1987 market crash when all of their puts were assigned early and at once. Look on the SI options boards and you will find some similiar stories in the last year. Do your homework.

Just a friendly reminder, I shudder when I hear talking about selling puts without also discussing the risks.
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