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To: GraceZ who wrote (12494)	7/15/1999 11:25:00 PM
From: Michael Young	Respond to of 29970

Not necessarily. Lots of pros will sell naked calls. Its not a bad strategy since premiums - especially on nets - is so high. But if the stock starts ramping the trader will have to either buy back call the or buy the underlying stock as a hedge. This acts to create even further upward pressure on the stock. MIKE

To: GraceZ who wrote (12494)	7/16/1999 1:54:00 AM
From: E. Davies	Read Replies (1) \| Respond to of 29970

OT but don't people usually buy options to hedge their position in the stock (long or short) rather than the other way around? I am speaking primarily of options market makers. They are in the business of hedging and making money from the spreads, not in taking risk. When you buy a call, most often an option market maker is selling it to you. He will buy stock in proportion to the number of calls you bought. I know it gets far more complex than that but I'm not sure how it is done. Eric