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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Jonathan Thomas who wrote (10701)	5/11/1999 1:00:00 AM
From: NateC	Read Replies (1) of 14162

Ryan, you wrote, " I assume they have gotten burned by people using that cash to buy stocks which have tanked, then couldn't cover their naked put. This is much more risky than owning a stock and writing calls against it. and, right you are. Trester's books and tapes point out that some brokerages...and MANY investors got killed with naked puts in October 1987. I could see how it happens to. What happened to most of them...is that they had sold the naked puts....and their stocks tanked...but the phone lines were so busy that day....they couldn't get through to their brokers......so their earnings were magnified big time......and I've heard of several people who bellied up that one day....all because of naked puts....and not being able to get back to their brokers to buy them back in time. SO....I'll stay with CC's for now, thank you....until I hear someone who was doing naked puts back in 1987..........tells me how to avoid this scenario. I have too many problems reaching any of my online brokers...on busy days. This scenario is all to scary to me

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