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To: Steven Hsu who wrote (10672)	11/21/1997 4:58:00 PM
From: Carmine Cammarosano	Read Replies (1) \| Respond to of 45548

if you are short the stock, then you are essentially covered...but it is not the same as a covered call where you can not lose...

To: Steven Hsu who wrote (10672)	11/21/1997 8:45:00 PM
From: Glenn D. Rudolph	Respond to of 45548

Since we're on the topic of options, I hope someone can answer a question that arose recently, viz., "Is there such a thing as covered put writing?" Ameritrade claims there is not. Somehow I had the impression that a put sell is covered if there are sufficient funds in one's account to cover the purchase of the underlying security should the put be exercised. Steven, You addressed two different issues. There is a such a thing as covered put writing. One writes puts and sells an equivalent number of shares short. The idea is to pick up the time premium as one profit. You have a risk of upside above your strike price, however. The more common and safer is to write naked puts and buy puts and a strike price 5 or 10 points lower at a much lower cost than what you took in by writing the puts. You have now written a covered put. Somehow I had the impression that a put sell is covered if there are sufficient funds in one's account to cover the purchase of the underlying security should the put be exercised. The above is just wise money management. You are not covered in any way against the loss of capital. The writing of the puts have the same risk. Glenn