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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: tranzz who wrote (2833)	2/12/2000 4:48:00 PM
From: Poet	Respond to of 8096

Duncan and tranzz, I'm so pleased that you're following us and learning from it. I'm confused about DLJ. Could it simply be that you're not approved for naked put selling yet? I had to resubmit another options trading application in order to be enabled for this. Please let us know how it goes. And welcome, both of you, to the thread.

To: tranzz who wrote (2833)	2/12/2000 5:25:00 PM
From: Jill	Read Replies (1) \| Respond to of 8096

I hope we all do well on our Microsoft craps game. Fidelity, Dreyfuss, Waterhouse allow put selling. You are required to fill out forms indicating option experience, and then they decide what level of trading they will give you. Selling naked puts is a relatively high level of expertise--according to brokerage firms, high risk.

To: tranzz who wrote (2833)	2/12/2000 9:01:00 PM
From: Ritch	Read Replies (2) \| Respond to of 8096

tranzz & Duncan - I think it is possible that you both just are not approved to trade naked options at DLT Direct. I have been selling puts at DLJ Direct for about 1 year. They want you to trade covered options for a while to get experience. Then they will make you write a letter to them explaining why you want to trade naked options and what strategies you wish to use. From your options application and the letter you write, a committee will either approve or deny your account for naked option trading. They really try to cover their butts! :-) (btw - Most brokers lump selling naked puts and selling naked calls in the same risk category. This makes no sense to me.) I can see the danger in selling naked puts. But if you have the underlying stock its just a protection. tranzz - I think you need to study puts a bit more. Having the underlying stock in your account does not protect anything if you are selling naked puts. If the price of the stock drops below the put price, you may have to purchase the stock. Good luck to you both. Ritch