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To: Alex Raytselsky who wrote (4505)12/23/1997 4:43:00 PM
From: yard_man  Respond to of 4749
 
Non-zero probability of stock being put to you? CPQ could have great earnings and the market tanks and takes CPQ down, too. You should buy a lower strike put to protect yourself to the difference between strike prices in case it goes against you.



To: Alex Raytselsky who wrote (4505)12/23/1997 5:00:00 PM
From: hpeace  Read Replies (2) | Respond to of 4749
 
in this market you do not sell a naked put..
you have to have a put to back up the put you sell....
I'm not saying this would happen.
but, a little more SEA disaster and cpq could fall to 50,40,34,22.....
you need to allow for this.
not that this would effect cpq the compnay at all. but, it could cause the analyst to spook...
analsyt spook easier than a bunch of naked chickens break dancing in front of foxes.