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To: TTOSBT who wrote (152749)	1/31/2000 2:46:00 PM
From: SecularBull	Read Replies (3) \| Respond to of 176387

You can sell naked puts, and that's what he did. It's considered to be near term bearish, with longer term bullish characteristics (assuming you really want the stock put to you). LoF

To: TTOSBT who wrote (152749)	1/31/2000 3:42:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 176387

TTOSBT, Shorting puts is bullish. Essentially, you make money if the price of the stock stays the same or even goes down a little (depending on the time value of the option). You make the maximum if the price of the stock rises to the striking price. See: Message 12733532 for an example of my use of this strategy. In this case (LGTO), I will make $7 per share if LGTO rises to $30 or better on options expiration. My break-even occurs at $23 on the day of options expiration. A positive in this approach is that you have use of the cash you get for selling the options (although your buying power is reduced). A second positive is that even if the shares are put to me at $30, my net cost would be $23 (excluding brokerage expenses) which is about $1.50 less than the market for the stock today. TTFN, CTC