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Technology Stocks : Macromedia...making a comeback? -- Ignore unavailable to you. Want to Upgrade?

To: Sultan who wrote (2024)	1/16/1998 6:08:00 PM
From: Patrice Gigahurtz	Read Replies (1) \| Respond to of 2675

Sultan: I sold a naked May15 MACR put at $6 3/4. If I get 'put' the stock my final net cost would actually not be $15, but rather $15 minus $6 3/4= $8 1/4. Thus, I'd be buying the stock for $8 1/4 anytime between now and 3rd Friday of May. If put the stock it would be like buying it at $8 1/4. If the stock is $12ish at put contract end I make $12 minus $6 3/4. Bottom line you have to be positive on a stock to write naked puts. But remember, I have the $$$$ to buy those MACR puts when/if they get 'put' to me; so I'm not really 'naked' in my view. If I didn't have the cash in the account sitting there I'd never do it. I'd never write a naked put on margin; NEVER !