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Technology Stocks : Ascend Communications (ASND)
ASND 212.00-2.4%10:12 AM EST

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To: Glenn D. Rudolph who wrote (37395)3/4/1998 9:20:00 AM
From: Greg h2o  Read Replies (3) of 61433
 
<<The risk and rewards to the investor is identical.>>
You are wrong on this. You have completely UNLIMITED exposure in selling a naked put. Think about it. You don't have the underlying security to protect you. The stock price can go up infinately....One of the reasons brokerage houses discourage selling naked puts is because the risk is SO enormous. Writing a covered call gives you mininal risk and you can enhance your return through income.

Now, I want to make sure I clarify something....in your message I'm responding to, you did not mention "writing" or selling the naked puts...In your original I think you did. If not, then we're talking apples and oranges and I apologize for not reading more carefully.
regards,
greg
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