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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (10752)	11/24/1997 12:04:00 PM
From: Beachbumm	Read Replies (2) \| Respond to of 45548

I use a deep discounter, so they don't suggest anything, I'm afraid. Earlier this year I did ask for approval to write naked puts which was not a problem, but I reconsidered and never did it. The market is rich enough to support many strategies. I've had a fabulous year collecting out of the money call premiums. Only around the summer did shares start to get called away. Now, COMS is my biggest dog, but at least I'm getting paid to hold it since I wrote Dec. 55s when the premium was still fat. My biggest question really is this: what does the naked put writer do when he's put the shares and the stock drops 30-40% like COMS has done? Does he just ride it out and wait until he can break even on the stock? Does he revert to writing CCs? Naked puts do tempt me, but I'd like to know more about how investors have actually fared with them. Beachbumm