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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: craig crawford who wrote (13800)	9/16/1998 8:02:00 PM
From: larry	Read Replies (1) \| Respond to of 18691

Craig, I did know a guy who sold too many naked puts during the 87 crash and found himself badly hurt by margin calls. However, I think that I will stick to a brokerage firm that does not allow to use margin to sell naked puts. Secondly, I will strictly do so only on issues that I am willing to 'long'. If that's the case, I think that most investors are willing to buy their favorite issues at a wholesale price. And again, if the Dow goes down 1000 point with a day, basically no one is going to be immune from the damage unless someone is heavily short in his portfolio. Another reason that I have faith in the market is that I am still able to make money since the market crash, all on the long side. In a typical bear market, I don't think that longs can do so consistently. Actually I have to say thanks to Michael Dell...this guy single handedly offers me the opportunity to get to where I am right now. And my trades in the last month was strictly DELL, with the exceptions of buying a few shares of LU at low 70s. Thanks to your response. good luck, larry!

To: craig crawford who wrote (13800)	9/16/1998 8:57:00 PM
From: Gotham Guru	Respond to of 18691

<<< I understand your point, but puts are a leveraged instrument. How many people that write puts write only enough that they can afford to be assigned? I doubt very many. Most greedy people write more contracts than they can afford to be put to them, amplifying their downside risk, but their upside reward is always going to be limited.>> CC I realize there is no perfect scenario-I only use (usually) covered puts but if I wanted to buy a stock I have considered going naked but with caution and mucho margin. Anyway--next subject... Instigator