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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: manalagi who wrote (83779)	4/30/2007 1:15:18 PM
From: carl a. mehr	Respond to of 206330

Not only naked puts can be bad. During the energy crisis in the early 70's, I worked at Cubic Corporation in San Diego, and the money manager for the employees pension fund sold naked calls on an energy stock. Well, selling the calls at about $10 and buying the shares back at the open market at about $30 sent the fund into bankruptcy. The big boys at Cubic, Zable and Breitweiser, had suits flying against the portfolio manager. And of course counter suits followed. It was a mess! The money manager had a glowing write-up in either US News & World Report or Business Week, but the public was never informed about the end result...carlmehr