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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: nokomis who wrote (84716)2/25/2000 1:06:00 PM
From: lee kramer  Read Replies (1) | Respond to of 120523
 
Nokomis: You own 500 shares of a stock and "write" calls...this is called a 'covered call'. But if you don't have those 500 shares and you write calls, this is called "writing naked calls." If the stock gets called away...that is, if it takes off, you've gotta put up the dough. Not a good idea to write naked-calls...covered calls are far safer. (Lee)


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