Any info about Iomega (IOM)? Message Board

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Non-Tech : Any info about Iomega (IOM)?

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To: Guy Gordon who wrote (7641)	9/26/1996 3:48:00 PM
From: chester lee	of 58324

To: chester lee ( 7612 ) From: Guy Gordon Sep 25 1996 6:13PM EST Reply #7641 of 7766 chester: Why can't you move from having sold covered calls to naked calls? "Writing the IOMG options obligates me to hold the stock until FEB (unless I also close the options positions)." Of course, if IOMG starts to fall, thos FEB 35 calls should become cheaper for you to buy back. But I thought you could just sell the IOMG and go naked on the calls. Is there a law on this, or just a rule that varies from broker to broker? You can buy back the options with no problem. You can sell the stock with no problem. BUT, are you qualified. I mean does your brokerage account qualify you to go NAKED on options. This typically requires level 3 authorization because you are accepting UNLIMITED risk. Writing calls (for me) is a way of lowering the downside risk, NOT finding ways to INCREASE UPSIDE RISK. Ask yourself, what would happen if IOMG hits 40 and you sold. but you still have an open position for options you wrote. IN essence, your NAKED and hte brokerage firms have the right to reach into your wallet and take the appropriate amounts (value of the options) as they become due.

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