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To: PaperChase who wrote (58499)	9/15/1999 11:29:00 AM
From: broken_cookie	Read Replies (1) \| Respond to of 58727

So how common is the "cash covered" nomenclature? I never heard it, but that doesn't mean anything. Just say "sell put(s) to open". No other instructions are necessary. If the stock is put to you, cost of stock would automatically come out of the cash. If there wasn't enough, a margin loan would also be automatic.

To: PaperChase who wrote (58499)	9/15/1999 12:13:00 PM
From: OX	Read Replies (1) \| Respond to of 58727

I've heard the term to sell cash secured puts. It's not as common to do, but there are brokerages that will allow it but not put writing on margin. In particular, it can come in handy in IRA accounts (which cannot be margin accounts). Regardless, your broker should have known what you meant. (wow, you actually can 'see' your broker?! :-)

To: PaperChase who wrote (58499)	9/15/1999 7:31:00 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 58727

I see you already received answers while I was at work so sorry for the late reply. Generally the position you were speaking of is normally just called "selling naked puts" as opposed to "covered puts". A naked position tells them you are not positioned inthe stock already and have the cash either in your account or have been OKed for the necessary margin to cover the risk. I believe you were trying to sell naked puts but then confused him when you were trying to clarify that he was NOT to borrom against your margin to cover the position which actually is a smart move depending on your broker. I have heard of some brokers tapping margin accounts so they can get the interest even when there was sufficient cash in the account. Of course these brokers usually get fired quickly <ggg> Hope you made out OK on the puts. The drop could have hurt depending onwhat you were selling. Hopefully nothing too volatile or close to expiration like OEX Septembers. Good Luck, Lee