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To: Glenn D. Rudolph who wrote (29314)	1/4/1998 4:09:00 PM
From: James A. Shankland	Read Replies (1) \| Respond to of 61433

[off-topic: options] This strategy is "silly". The covered call is a synthetic naked put. Glenn, while you are (of course) technically correct, I can think of 3 reasons to write covered calls instead of naked puts. I. Call options are often more heavily traded, and hence more liquid. II. I sometimes see a price difference: you seem to get a better deal writing the call. I don't know why this is. (It would also seem to imply that there's money to be made in arbitrage here.) III. I have some stocks that I'm holding long-term, but I'm not above doing occasional short-term trades in covered calls on these stocks. If I'm already holding the stock anyway, it's easier to write a CC than a naked put. I'd certainly appreciate hearing your thoughts on these points.

To: Glenn D. Rudolph who wrote (29314)	1/4/1998 7:10:00 PM
From: hal jordan	Read Replies (1) \| Respond to of 61433

I was simplifying his methodology Glenn. You can check out what he does by reading the Covered Call thread and making your own judgement. Hal

To: Glenn D. Rudolph who wrote (29314)	1/4/1998 9:43:00 PM
From: yard_man	Read Replies (1) \| Respond to of 61433

Whether or not the risk is the same depends on how you view the actual investment made. The risk is not the same on a dollar for dollar basis, i.e. take the amount necessary to create the CC position and take the same amount and buy naked puts. Puts = more leverage, hence more risk. Perhaps this is why brokers don't view it the same. However, control the same number of shares and you are right, except you have more options at expiration if the share price moves up with the CC.