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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 227.35+0.3%Dec 19 9:30 AM EST

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To: Y2k_fan who wrote (29557)12/10/1998 6:00:00 PM
From: Jason Cogan  Read Replies (2) of 164684
 
Y2K:

Even with covered calls, margin becomes an issue. Instead of a boxed position, the stock is taken at full margin value.

About selling naked calls and puts, I actually think the opposite is true. Too many buyers of out of the money options, thus driving the premiums higher and forcing the market makers to be in and out of their hedges more frequently.

Too many sellers would have the effect of dampening volatility, and bringing option prices down. This has not been the case.

Hope this helps.

Regards,
JC
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