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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Mike Gordon who wrote (23457)	3/26/1998 6:03:00 PM
From: Tom Gebing	Read Replies (2) \| Respond to of 97611

Mike, I have been told that is a IRA rule. Selling puts is not the same as writing calls as far as they are concerned. That is why they allow put buying. Selling puts would require someone to purchase the stock if exercised. If someone did not have cash in the IRA then it would be a margin trade, which is not allowed in IRA's. Selling calls against a position only exposes a IRA to sell the existing stock position. There is a big difference when it comes to protective action versus non covered strategies. Why would someone sell a put against their 1000 shares of Compaq? If they are worried, they would buy a put against the position to lock in a profit. The buying of puts or selling of calls can only be done on current long positions. Hope this clears things up and eliminates the confusion. Regards, Tom