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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: Mike Gordon who wrote (13746)	7/3/2001 10:37:52 AM
From: Ira Player	Read Replies (1) \| Respond to of 14162

While naked puts can be sold in level 3 only if it is offset with a short sale. Equivalence shows this position has the same risk characteristics of a naked call. Brokers actually REQUIRE this at level 3? Sounds crazy to me...... Ira

To: Mike Gordon who wrote (13746)	7/3/2001 10:50:09 AM
From: Herm	Read Replies (1) \| Respond to of 14162

With my broker (www.mrstock.com)to write naked puts they require level 4 authorization and a portfolio value of $25,000 plus. That is reasonable downstroke for that level of risk taking. Honestly, someone without that amount of earned resources really should not be trading naked anything. And, that does not mean going crazy and being naked all of the time. After some major dumps it might be the right time for some carefully selected easy naked puts money since the downside exposure is hopefully reduced (in the worse case) if they put it to you. Thus, it reduces your entry cost into the position that you would not mind owning anyway and is part of other investment activities like CCing or LEAPs spreads and even averaging down your position.

To: Mike Gordon who wrote (13746)	7/3/2001 10:51:37 AM
From: Herm	Read Replies (1) \| Respond to of 14162

With my broker (www.mrstock.com)to write naked puts they require level 4 authorization and a portfolio value of $25,000 plus. That is reasonable downstroke for that level of risk taking. Honestly, someone without that amount of earned resources (proven trading experience) really should not be trading naked anything. And, that does not mean going crazy and being naked all of the time. After some major dumps it might be the right time for some carefully selected easy naked puts money since the downside exposure is hopefully reduced (in the worse case) if they put it to you. Thus, it reduces your entry cost into the position that you would not mind owning anyway and is part of other investment activities like CCing or LEAPs spreads and even averaging down your position.