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To: Logos who wrote (12464)	7/9/1998 3:12:00 PM
From: Moneysmith	Respond to of 27307

If you sold Oct.60 calls naked. margin required would be huge.

To: Logos who wrote (12464)	7/9/1998 4:23:00 PM
From: Jock Hutchinson	Read Replies (1) \| Respond to of 27307

Yes, you are selling the calls naked--meaning no ownership. I have already listed the advantages of selling the calls, so no need to explain the advantages to the poster who asked "What's the Diff?" The potential dollar for dollar loss is identical when selling a deep in the money call as opposed to shorting a stock. Is it risky? Sure it is. It is slightly less risky than shorting a stock because no one can squeeze your call as one can with a stock; the capital is slightly less by about 30% in the example using a strike price of 60 for YHOO; and the lack of an uptick requirement,which is meaningless for a high volatility stock like YHOO. But risky is holding a stock that is selling at 30 times sales with a PE of over 200 and an annualized growth rate of less than 100%.