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Technology Stocks : Cymer (CYMI)

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To: Curlton Latts who wrote (17448)5/13/1998 8:10:00 AM
From: Steve Wood  Read Replies (3) of 25960
 
Zeev,

Re: writing covered calls. I think the risk that you're not seeing is the fact that you're locked into a position should the market turn against you.

A covered call is just a synthetic naked put. The risks are, for all intents and purposes, the same. Yet for some reason, writing naked puts is considered very risky while writing covered calls is not.

Go figure...

Que le vaya bien... Steve
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