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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Herm who wrote (13743)	7/3/2001 12:45:48 AM
From: Mike Gordon	Read Replies (3) \| Respond to of 14162

Heim: Thanks for your explanation. I was under the impression that most of the brokers farm the 'street name' equities to specialty firm (or hold the equities themselves) for their own cc's or to use to complete QQQ baskets, etc. I find many of the retail brokers are reluctant to encourage put & call writing. For instance, to write a naked put, some brokers require level 4 authorization. While naked puts can be sold in level 3 only if it is offset with a short sale. Certainly, a short put married to a short sale has far more risk than a short put with the actual cash in the account to support it. Maybe these requirements are only with my brokers. Also, it's interesting that both tax and non tax accounts are able to purchase calls and puts with ease which most people take a bath on. JMHO Thanks again for your reply Mike