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To: London Brian who wrote (5723)	3/29/2000 1:55:00 PM
From: KFE	Respond to of 8096

London Brian, Several months ago I accepted the revelation that naked puts have the same risk reward as covered calls. But, lately I seem to have noticed several stocks where the covered calls are better (unless you have to pay margin interest). Is this normal? I am not sure what you mean if you could provide an example maybe it would be easier. IF you mean that the call premium will be slightly higher than the put premium with the same strike when ATM this is true. All put and call prices are related and an ATM call will generally have a slightly higher premium than the put because of conversion and reversal arbitrage. They will never be a great difference for the same reason. Some pending event can effect the differential but usually the interest cost to carry the arbitrage to expiration will determine the difference in the premiums. Regards, Ken