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Strategies & Market Trends : Waiting for the big Kahuna

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To: Joe Waynick who wrote (52118)	6/10/2001 7:56:07 PM
From: Sergio H	Read Replies (3) of 94695

<naked puts are equivalent to covered calls> Hi Joe. Naked puts are not allowed in any IRA account because of the risk. Naked puts have infinite loss potential. The underlying stock can theoretically go up and up and up. On the other hand, covered calls have a finite loss limited to the value of the underlying shares in the event that the shares all of the sudden become worthless. Sergio

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