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

To: Glenn D. Rudolph who wrote (37513)	3/4/1998 2:21:00 PM
From: Sowbug	Read Replies (1) \| Respond to of 61433

Finally, IRAs do not permit naked puts. Any corporate lawyers out there? How hard is it to set up a company whose sole business is selling naked puts, and then to do a public offering of it? Last I checked, IRAs can buy penny stocks.

To: Glenn D. Rudolph who wrote (37513)	3/4/1998 5:22:00 PM
From: Marc Hyman	Read Replies (1) \| Respond to of 61433

Re writing calls vs puts The positions are identical except the investor also has their money tied up in the underlying security with a covered call. Uhhh, I know I shouldn't get into this but there is another difference -- the direction of the change in price. Assume I write one $30 put and one $30 call while the stock is $30. If the price goes up the put expires and I get to keep the premium, but the call is exercised and have to come up with the shares. If the price goes down the call expires and I get to keep the premium, but the put is exercised and I have to come up with the cash. Now last year as the price kept going down I made quite a bit writing calls. Had I wrote puts I'd be out a lot of cash, but would have more shares. It depends what your goals are. At the time mine were to keep my shares (part of a long term investment measured in years, not months) and yet still make some money with some short term trades. With the price going down and my goals it made sense to write calls. // marc