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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: McNabb Brothers who wrote (24598)	12/9/1997 11:07:00 PM
From: hpeace	Read Replies (1) \| Respond to of 176387

actually the books say that naked calls is more risky than naked puts..the logic used is that the stk can only fall to zero and then the put is at max value..but stks can go up allot more than they fall.. just using cpq last july.. someone writing a oct 100 call naked would have been down about 110 points but if they wrote the naked 100 put then the most they would be down is 100 points. this is a live example since cpq went up 100 points in that time. dell would have nailed someone even worst in other periods. So, their logci is a stk can fall to zero only not negative and it can go up 100% , 200% and 300%. So, they say the naked call is the riskiest.... but, if you do a put or call spread you sleep like a baby and most the time when even if the stk goes against you. actually , if you wanted to sell a naked put on dell or cpq you would have bot a put yesterday when they where cheap...when today create the spread by selling a put that was 10 to 15 points up.