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Technology Stocks : 3Com Corporation (COMS)
COMS 0.00130-18.8%Nov 7 11:47 AM EST

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To: Beachbumm who wrote (10751)11/23/1997 7:08:00 PM
From: Glenn D. Rudolph  Read Replies (1) of 45548
 
Do you use stops when writing naked puts? Just wondering. I know that in reading your posts you have said that you were put many shares. I do not use stops. Well, I'm not confused. I was simply supporting Carmine in what I thought was his assertion that naked put writing is riskier than covered call writing. I believe the fact that brokerages require a higher level of option approval for the former demonstrates this. (Although I understand your view that they are similar trades.) You believe the above is to benefit the small investor or the brokerage house? If you buy shares and write covered calls, the house has more of your equity. The house is not protecting the small investor. The house is out to turn the most profit for the house. The house also receives margin interest on a long margined position but not on a naked put. Why do you believe the house suggests covered calls in place of writing naked puts? Glenn
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