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Technology Stocks : Ascend Communications (ASND)
ASND 217.17+0.3%Nov 18 3:59 PM EST

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To: Greg h2o who wrote (37474)3/4/1998 9:23:00 AM
From: Gary Korn  Read Replies (4) of 61433
 
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


Greg,

When you sell a put, you are naked that put. As the stock can be assigned to you at the strike price, your exposure is limited to the difference between 0 and the strike price.

Selling a put is bullish. Worst case, it is the same as buying the stock at a discount.

Gary Korn
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