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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (29355)	1/4/1998 9:49:00 PM
From: Glenn D. Rudolph	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. Barry, I believe you meant write naked puts. In anycase. Agreed. One has more upside or downside for the dollar invested by writing naked puts. More to gain or lose if one makes that choice. 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. The above is incorrect. Ones options are identical just using different types of trades. Glenn