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To: Skeeter Bug who wrote (119608)	3/7/2001 4:04:24 PM
From: manalagi	Read Replies (1) \| Respond to of 164684

i don't recommend it at all. it is fun until you get burned. problem is, by the time you get burned and learn the lesson you may be out of the game altogether. I do not recommend to anybody of my moves, whether shorting or selling naked puts. Shorting is not for everybody since as HDL said, your potential loss is huge huge huge if you don't act quickly when the stock goes against you. Remember when amazon went up 40 points in one day, and one person short just 100 shares, means he is out $ 4K. The same thing with naked puts. When Akamai hit 300, and someone sold naked put at a strike price 250, thinking that he can buy the stock much cheaper if assigned, where would he be now that Akamai is in the teens. Again naked put is not for everybody. Every move in the stock market is not a generic solution. Each person has a different objective and financial capacity and short term or long term goal. This thread is merely presenting what each person is doing and is a place to exchange for ideas. As for selling naked puts on Oracle at strike price 17 1/2 and got paid 5 1/4, I would in essence buy Oracle at 12 1/4 per share if assigned. Let us say Oracle goes out of business and the stock becomes zero, and I did not have the discipline to cut my losses. At most I have a loss of $ 12 1/4 a share. Compare that to a person who bought Akamai at $ 300 and as a ltb/h still has that stock at $ 12.50/share. Yes selling naked put is risky, just have to know what, how, which and when to do it. Investing takes many forms and nobody can claim that he/she is an expert in that field. Not even Warren Buffett dares to make that claim.