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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Carlson who wrote (13246)	12/14/1997 1:03:00 PM
From: davesd	Read Replies (1) \| Respond to of 70976

Carlson....My account does not allow me to sell naked puts or calls. I have tought of switching in the past...but I never have...who do you use?? dave

To: Carlson who wrote (13246)	12/14/1997 3:45:00 PM
From: carl a. mehr	Respond to of 70976

Selling naked calls is OK as long as the stock don't go up. The year was 1972 or 1973 and I was working at Cubic Corporation (CUB), and the managment company of the Employee's Pension Fund cleaned the fund out completely and even ended up with a huge deficit! Yes that all happened from selling naked calls on a stock selling at about $10. This stock rocketed to more than $30. Having to buy the shared at $30+ on the open market and selling for $10 to the option holders totally cleaned out all the funds and a big deficit resulted! In the middle of the year Business Week, ran a glowing report of how this money management firm was making lots of money for pension funds. Paul Harvey would say: Here is the rest of the story. I never saw Business Week print it! If I am correct, I would call that crocked reporting. Later that same year the pension fund was 'toast'! Good luck in your trading, humble carl