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To: X Y Zebra who wrote (16419)	9/28/2000 3:14:53 PM
From: X Y Zebra	Respond to of 21876

Put...put...put...put... chuuuuu, chuuuuuu.... Uncovered call writing A short call option position in which the writer does not own an equivalent position in the underlying security represented by his option contracts. Uncovered put writing A short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account, cash or cash equivalents equal to the exercise value of the put. cboe.com cboe.com as an add on... point of interest: 2. Future volatility means the annualized standard deviation of daily returns during some future period, typically between now and an option expiration. And it is future volatility that option pricing formulas need as an input in order to calculate the theoretical value of an option. Unfortunately, future volatility is only known when it has become historic volatility. Consequently, the volatility numbers used in option pricing formulas are only estimates of future volatility. This might be a shock to those who place their faith in theoretical values, because it raises a question about those values. Theoretical values are only estimates, and as with any estimate, they must be interpreted carefully. cboe.com