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Strategies & Market Trends : Tech Stock Options

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To: Michael Ohlendorf who wrote (58342)	2/23/1999 2:16:00 PM
From: otter	Read Replies (1) of 58727

In order to sell naked calls or puts you need to have the resources at hand to back up your trade if it goes south on you - which for all practical purposes means either the cash or other negotiable instruments. For exact requirements, you should speak with your broker who after it's all said and done will take action on your behalf and then nick you appropriately. That said, selling calls without the stock to back it up or buying puts without the cash to buy a stock that is could be put to you is, in my mind a very quick way to go broke fast.

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