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To: Gersh Avery who wrote (5179)	1/23/1999 4:29:00 PM
From: Chris	Read Replies (1) of 11051

Gersh, Covered Puts continued... >think of who gets the premium .. Good point! I was not thinking about this part. I was thinking about selling the puts to protect the short position. If you were looking for premium you could just write the puts with/without any position. >considered the same as owning the stock and writing calls. Yes you are right, but I have a hard time thinking of how to really make money enough money on the short/covered put side. It would tie up a large chunk of capital and I've not seen many premiums worth enough to doing this. I've never yet shorted a stock either. I have to admit I'm not looking at the internuts either. They are just too crazy for me. AOL is the only one that I have level of comfort with, and I'm not that comfortable with it either. I understand the theory, but I don't think I'll be using this particular tactic. I write my puts naked. <g> >As brokerage firms and market makers tend to be sellers of options, >the market has a tendency toward making as many of these expire >worthless as possible. This is something a friend made me aware of. He is a Market maker on the Pacific Stock exchange. I've been trying to see if I could make some good pizza money on this. I currently have 3 PIXR feb 40's (PQJNH,sold @5). Pixar is my ongoing experiment with writing naked puts. In nov I kept the cash. Dec I was put-to. I didn't mind this too much, but wanted my money for nothing(and chicks for free to quote the song from Dire straits:-). I think I'll continue to play with this one for a while. I'm thinking about the March 35's or may-be the 40's in the next few weeks. In general I look for at least a 10% premium return for the risk. I'm interested in hearing from anyone with experience in put/call writing. christopher

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