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To: Greg h2o who wrote (37474)	3/4/1998 9:23:00 AM
From: Gary Korn	Read Replies (4) \| Respond to of 61433

You have completely UNLIMITED exposure in selling a naked put. Think about it. You don't have the underlying security to protect you. The stock price can go up infinately Greg, When you sell a put, you are naked that put. As the stock can be assigned to you at the strike price, your exposure is limited to the difference between 0 and the strike price. Selling a put is bullish. Worst case, it is the same as buying the stock at a discount. Gary Korn

To: Greg h2o who wrote (37474)	3/4/1998 9:30:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 61433

You are wrong on this. You have completely UNLIMITED exposure in selling a naked put. Think about it. You don't have the underlying security to protect you. The stock price can go up infinately....One of the reasons brokerage houses discourage selling naked puts is because the risk is SO enormous. Writing a covered call gives you mininal risk and you can enhance your return through income. Greg, We are talking about writing naked puts not naked calls. Sheesh LOL. Are we cleared up on this now? Glenn PS So frustrating for us both LOL:-)

To: Greg h2o who wrote (37474)	3/4/1998 12:24:00 PM
From: George Coyne	Read Replies (1) \| Respond to of 61433

<< <<The risk and rewards to the investor is identical.>> You are wrong on this. You have completely UNLIMITED exposure in selling a naked put. >> Greg, I used to think as you are, but I've come around to Glenn's thinking. Consider what happens in the limit in either direction. DOWN: The underlying stock goes to 0 (zero)from 20. If you have sold one 20 Put contract, you lose $2000. less your premium. If you sold one 20 covered Call contract, you lose $2000. (the stock value)less your premium. UP: The underlying stock goes from 20 to 40. If you have sold one 20 Put contract, you make your premium. If you sold one 20 covered Call contract, you make your premium (and DON'T get to keep the appreciation, since your stock will have been called away) Make sense? G. W.