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Technology Stocks : AOL Options for the Bearish -- Ignore unavailable to you. Want to Upgrade?

To: White Shoes who wrote (11)	3/2/1998 1:31:00 PM
From: James F. Hopkins	Read Replies (1) \| Respond to of 33

NO , there is no head start, writing naked calls are the most risky of all options , you have the spread..and the hidden spread and the commisions to over come, for some one who is not an absolute expert to get into this is the fastest way to the poor house i can think off. Options are really for hedging aginst a stock you have a position in or want a position in. Say I like CRUS and want her cheaper than she is now selling at, I can write naked puts..but need to have the reserves to pick her up. You write nacked calls and the stock has a gap up, your in deep troble..if thoes calls go in the money and you don't have the reserves then you are broke. They will sell every thing you have and don't have to ask you squat. ON top of that with options you are compeating aginst a team of floor traders and their bids are never posted, they in effect create the hidden spread ..over 85% of people who play options lose their shirt. Some very smart people have gone down in flames thinking they could get richer fast with leverage. I write from time to time write covered calls if I get enough for them but it' on stocks I like, and it's to lock in a dividend, and or set a target sell price. There is no free lunch, if you think you found one what you have found is a trap. Jim