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To: sergio who wrote (9314)	1/18/2001 1:41:45 PM
From: Ian@SI	Read Replies (1) \| Respond to of 10921

I think in part it depends upon how the brokers are regulated which varies by countries. Writing naked puts is a strategy which brokers usually are required to restrict to sophisticated investors. And the most objective measure that their regulator will accept is how much money the customer has. IMO, it's irrelevant or nearly so. But I'm neither a regulator nor a broker. Other requirements are that your investment objective be aggressive, short term, speculative or whatever the highest risk category is on their "know your customer" survey; as well as claiming to have multiple years of options experience; plus assuring them that you fully understand that you can get an early assignment at any moment prior to expiration. Ask your broker what their specific requirements are; and what you need to get the approval. At TWE, I've trading authority for an account which is under $100K and for which I've not provided any guarantee. On my first attempt to write a naked PUT on that account, the trader advised that the account wasn't approved for writing options. after a short discussion, he let the transaction go through, and had the account permissions changed without any further paperwork being required by the account holder. Long story, but there does seem to be some flexibility at least at Waterhouse.

To: sergio who wrote (9314)	1/18/2001 1:58:04 PM
From: Mr. Sunshine	Read Replies (2) \| Respond to of 10921

<<It would be nice to write a naked put.>> I have no idea what your investment experience is, but I want to put (pun intended) out a basic warning to anyone who has never written (sold) naked puts. Be very, very careful. I do it, have made a lot of money, and lost some too. In a rising market it seems like free money. In a bear market you can really get burned by margin. There are all kinds of stories of large investors who were completely wiped out in the 1987 market crash when all of their puts were assigned early and at once. Look on the SI options boards and you will find some similiar stories in the last year. Do your homework. Just a friendly reminder, I shudder when I hear talking about selling puts without also discussing the risks.