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Biotech / Medical : Sepracor-Looks very promising -- Ignore unavailable to you. Want to Upgrade?

To: M. Ramle who wrote (1337)	10/29/1998 6:51:00 PM
From: ocerg	Read Replies (1) \| Respond to of 10280

Mazen, Everyone has their own strategies and opinions on options and I remember the UAL debacle well. However, I have to disagree with you regarding <<"selling naked put options is very risky">>. On the contrary if you admit to the possibility of owning the underlying stock, it is a very sensible to way to either buy the stock or generate income at very substantial annualized returns. For example, if you like SEPR at say 63 and are willing to buy at that price then why not sell the NOV 60 put at say 2 1/4. If you are put to at 60 you own the stock at 57 3/4. If SEPR stays above 60 you have earned the premium of 2 1/4 and are ready for the next cycle. I advocate selling the nearest expiration date, it will give you the largest annualized return. As far as the stock taking a huge hit, would you rather have owned it at 63 or at 57 3/4? I always have the cash available to cover a put. Selling NAKED CALLS is very risky!!!!!