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To: edamo who wrote (387)12/30/1999 10:11:00 AM
From: taxman  Read Replies (2) | Respond to of 8096
 
roth is correct.

"writing puts...is similar...to covered call writing"

i don't advocate either strategy.

maybe we can agree that writing a naked put gives you:

1)time value to extent that premium received exceeds intrinsic value

2)use of the funds generated by the premium

you give up:

upside once stock rises over the strike price plus premium.

i don't think what you get is worth it. you do.

now isn't that real simple?

regards