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

To: cthruu who wrote (5442)	3/23/2000 7:18:00 AM
From: Seldom_Blue	Respond to of 8096

This is why I like options. One knows exactly the amount of money at risk going in. Except when selling naked puts!!!! When selling naked puts, you do know the risk going in. You can be assigned the stock and it will go to zero. You probably meant except selling naked calls? Seldom Blue

To: cthruu who wrote (5442)	3/23/2000 7:39:00 AM
From: edamo	Read Replies (2) \| Respond to of 8096

cthruu..."money at risk...except when selling naked puts" money "at risk" when selling naked puts is the strike less the premium, no more, no less. you probably have the misconception as most who are not familiar with the strategy of potential great losses if the stock drops. you buy a call, stock drops you lose and have no repair. you buy the common stock drops you lose with no repair. you sell a put stock drops you win until it reaches strike less premium and you have a repair strategy available to you. so how is the risk higher? suggest you gain experience prior to making absolute comments on any option strategy. they all work, but the level of how well they work is dependent on the proficiency of the investor....lot of "fools" lost a lot of bucks buying qcom leaps at crazy premiums to the market because they believed qcom would be 2000 in 2000!