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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (134726)	6/27/1999 12:27:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 176387

t, With a Naked Put, the seller has all the downside from the Strike Price minus the Premium received. Seller is bullish hoping for a rise in the underlying's price. With a covered call, the seller loses all the upside after the Strike plus the premium received. Seller is somewhat bearish hoping for the underlying's price to fall.

To: taxman who wrote (134726)	6/27/1999 8:42:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 176387

Let's try one more time... Naked Put vs Covered call for 1000 shares of Dell at closest strike. i.e. Aug 37.5 Covered Call Buy 1000 Shares of Dell at 36 15/16ths: -36937.60 - commission. Sell 10 Dell Aug 37.5 calls at: 2 7/8: 2875.00 - commission Net cost: $34,062.60 + 2 commissions. Naked Put Sell 10 Dell Aug 37.5 Puts at 3 1/8: $3,125.00 - commission ++++++++++++ Now if you still think that Naked Puts and Covered calls are identical, just send me 34,000 and I'll give you the premium and the obligation for 10 Naked Puts.

To: taxman who wrote (134726)	6/28/1999 9:59:00 AM
From: edamo	Read Replies (1) \| Respond to of 176387

taxman...ot ot ot "naked put same as covered call" covered call i want underlying to be flat to down bias...naked put i want flat to upward bias...short naked put akin to long underlying position...covered call more like short the underlying. covered call i must own the underlying and be willing to give it up naked put not necessary to have a position, but desire to own at a predetermined level as far as safety...both safe...can't lose selling a covered call..always win-win...a bit more risk of naked put, but no more risk then long the underlying at a higher price then the strike less premium. if adept you can maintain a win-win with the put sale, but more attention must be paid to the position. i use options not as a trading strategy but as an investment strategy.