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To: eikos who wrote (51239)11/20/1999 10:20:00 PM
From: jmac  Read Replies (1) | Respond to of 152472
 
The reason why you can't write puts in your retirement account is because the writing of naked options i done in Type 2 (margin account) and you can't margin in retirement accounts. It's the law, not a brokerage house rule).

As for taking risk, I like the idea of writing puts but not on stocks that have the potential to skyrocket. If I am going to take the risk, then I'd rather have the potential of the gain. But, that's my investment choice--doesn't have to be yours.



To: eikos who wrote (51239)11/20/1999 10:28:00 PM
From: Jurgen  Read Replies (1) | Respond to of 152472
 
eikos: i agree, puts might work. I just wanted to point out that writing naked puts is quite risky compared to writing covered calls. At current levels i'd sleep much better with a covered call.

Jurgen