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Non-Tech : Knight/Trimark Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Susan Saline who wrote (4638)	10/5/1999 6:54:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 10027

>>> am looking to write November naked puts. speakie enghish? gggg I am Zdummy when it comes to naked ones.. I know with a Nov put one would expect the stock to fall in the coming weeks ... but what is a naked one? Sue, There are two misunderstandings here. I am not buying puts but rather I am selling them. This means I am not playing NITE to go down. I expect NITE will either go up or remain flat for awhile. If I write (sell) puts stike 30 expiration November and NITE is below 30 at expiration, the stock would be assigned to me so I would own more unless I bought the puts back. This is a way to buy a stock at a discount. The term nake is used since there is risk of taking a loss that is greater than the put premium I receive for my sale. The wors case is NITE goes to 0 and I have to buy the stock at 30. If one buys the puts, the most they can lose is the premium they pay. Another way to word this is I am short the put. Did that make sense? I buy a lot of stocks via naked put selling. It works well for me as long as I do not sell too many contracts and better if the stock moves up which is in my favor or remains the same. I receive the premium in both cases. Glenn