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Technology Stocks : Ascend Communications (ASND)
ASND 209.15-1.5%Nov 20 3:59 PM EST

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To: Glenn D. Rudolph who wrote (36728)3/2/1998 9:54:00 AM
From: Greg h2o  Read Replies (2) of 61433
 
RE: <<Covered calls are suggested by every major brokerage house. The brokerage house makes the most money on this position. Writing naked puts is discouraged but that is most profitable to the writer.>>

Both transactions would cost the same (assuming you're already long the underlying stock--in this case the person appears to be). So, the brokerage house doesn't discourage writing naked puts because of that.
The reason you'd make more on the naked puts is the risk is so much higher. As many things as brokers and brokerages do wrong, this isn't one of them.
regards,
greg
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