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To: duncan moyer who wrote (2170)	11/20/1997 12:31:00 PM
From: Gary M. Reed	Respond to of 42834

Duncan, I hope I understood your situation correctly. You said you owned some calls--I presume what you meant was that you wrote calls on that particular stock which you owned and it was a takeover situation. In that situation, yes you could tender the stock without buying back your calls. However, that would leave you with a "naked" option position, which the brokerage would probably require some equity in your account to cover the necessary margin requirements. You would also need to be approved by their compliance department for suitability to write/own naked calls. So yes, you could do it, but as you probably know, it would be a risky proposition, since there is always the risk that someone could come in and top the present takeover price, at which you would be at risk for the difference between the takeover price and the strike price of your options. So be careful--I have seen a lot of people get their shirts handed to them by being net-short calls. Good luck, Gary