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To: MDGO who wrote (16444)	9/28/2000 3:16:31 PM
From: Georgeb	Respond to of 21876

The premiums become an important issue to consider because that would be 100% of your investment. The difference in premiums between the Puts would certainly be greater than 10 points. You can lose money. The problem with calling it a "covered put" implies that you have covered any possible price event perfectly with a change in stock price corresponding to the option exercise. You cant lose money in a covered call where the strike is higher than what you paid for the stock + commision. Complicated the possibility of shorting a stock and selling a put is that the liquidity in options is nothing like in stocks, so the price tracking is only loose. It can be hard to set up a position on some stocks.