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To: The Perfect Hedge who wrote (4360)	12/3/1997 2:36:00 PM
From: Big Dog	Read Replies (1) \| Respond to of 95453

Glen, before you go too far you better check that your account is set up to SELL puts. If you did not set up the account for "full options trading" and if you don't have a certain equity level (varies by firm), you can not SELL puts.

To: The Perfect Hedge who wrote (4360)	12/3/1997 2:37:00 PM
From: SJS	Read Replies (1) \| Respond to of 95453

2 reasons: 1) Selling a put is like buying a call, EXCEPT that you take money in, and not expend it. If you're wrong (and the stock goes down), your put will increase in value (against your position) and the loss continues the lower it goes, while the call goes to zero, and no lower. 2) Deep in the money puts have little premium, so it reacts very quickly either way. As the volatility of the earnings release drives the out of the money call/put premiums, some people want to participate immediately (more sure of themselves) than have the volatility/premium dry up on them with little or no stock movement. When this happens, the out of the money call or put value is reduced by 1/3, let's say, and the stock barely moves since the risk is now diminshed and she trades on real risk instead of virtual risk. In other words, you just lost 30% of the put/call value and nothing's happened. Someone's made 30% on you and that happens alot.