Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Waterhouse Securities -- Ignore unavailable to you. Want to Upgrade?

To: Thean who wrote (701)	9/18/1998 5:36:00 PM
From: upanddown	Read Replies (1) \| Respond to of 2076

"Naked puts have the same risk features as covered calls." Thean, I was also puzzled by that comment. I think what John meant is that the underlying for a naked put could theoretically decline to zero at expiration while your long covering the call could do the same during the option period. In both cases, all you would net is the premium. The difference to me is that the put would be exercised and generate an out-of-pocket loss while the covered call would expire worthless and generate only a paper loss. John