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To: lurqer who wrote (2839)	2/13/2000 8:35:00 AM
From: Jill	Respond to of 8096

Yes, a point of clarification here: When you sell a naked put, you must make sure you have the capacity, either in margin, cash, or ability to sell stock and generate cash, to be put the underlying--i.e. to buy 100 shares per contract at whatever strike you have chosen. So having stock only protects you in that it may have generated enough margin collateral to buy the stock . I think you are thinking of selling covered calls, which "protects" you in that you are taking in a premium in exchange for the promise that you will give up your stock if it goes above the price strike set when you sold the call. Your stock can get "called away." It's covered rather than naked because you already own the required stock in your portfolio.