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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Dave Gore who wrote (47770)	9/28/2002 6:19:14 PM
From: Snowshoe	Read Replies (1) \| Respond to of 281500

You do know what SELLING naked calls means, right, as opposed to buying them? Of course. If you sell naked calls on an airline stock that subsequently drops, you get to book the premium as a profit when the options expire worthless. There is no such thing as buying naked options. The "nakedness" refers to the exposure you incur when you sell options short. So the only way the terrorists could have made money using naked puts would have been by shorting puts on stocks that would rise after the attack (such as defense stocks).