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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: McNabb Brothers who wrote (67694)	7/14/1999 1:03:00 PM
From: Paul Merriwether	Respond to of 164684

That strategy works some of the time, and can be extremely dangerous at others. The "time value" of an option is there for a reason, and is a function of the volatility of the stock(not investor mania, although that contributes to the volatility). For instance, Niederhoffer got wiped out in oct. 1997 selling naked puts. By someone's reckoning on the Dell thread, you lost more than US $70 million on DELL and AOL naked calls couple years ago. In short, the naked options are great--the problem happens when the rare few times you are forced to clothe them. jmo. No offense implied.

To: McNabb Brothers who wrote (67694)	7/14/1999 1:19:00 PM
From: Jan Crawley	Respond to of 164684

I sold some Oct. $100 puts on EBAY yesterday At approx. $12 premium, good deal. Just in case e-bay has a bad quarter, I am going to follow you and place a limit to sell Oct 90 and ask $12 premium, and sell Jan $110 and ask $35. Just 2 contracts each. As for Amzn, if there is going to be a little e-run, and an Oct new lows, then would it be a good move to sell calls around 7/27? I think that I will write some naked calls on Amzn/Aol if they try to run. Thanks for sharing!