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To: marginmike who wrote (284492)	4/16/2004 9:15:04 PM
From: shoreco	Respond to of 436258

>> friend did that on Yahoo back in the day lost $800,000 in a week-ng << Sorry to hear that, IMO this is exactly why TASR did what it did today... In the end, not an April call ITM...LOL... Anyway, selling Naked calls is not risky, selling naked calls w/out capital to back it up is... ie: TASR Sept150 calls go for about $11 at todays close (you get a 36pt head start...LOL...) You sell 10 contracts (you gain 11k in premium), you have from now until September to pocket this premium (or part of it) you could always buy them back for less and pocket a smaller but quicker gain... If TASR reaches $150 YOU MUST BUY IT!!!(now you have a covered call with no risk) and then you must sell the stock it if it falls back below $150 or you lose your premium (you could do this an awful lot if TASR flips above and below the strike price and a trade like this should never be left unattended)... Unless you let it get away from you (going over $150) it's hard to lose money... It sounds like your friend let YHOO run away... Of course you would need about 200k to do this trade (150k to buy TASR and the balance to cover the rising premium of the calls), but by the time expiration comes around that premium will adjust accordingly and start to decline... Let's see, 200k to make 11k in 5 months??? Nah, there's easier fish to fry...LOL... But it does work well with index options with only a weeks worth of premium left... 200k to make 11k in a week??? Now we're talking... EOM Shoreco