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To: MonsieurGonzo who wrote (5174)	1/23/1999 2:09:00 PM
From: Chris	Read Replies (4) \| Respond to of 11051

MG, RE:"covered PUTs" I had the same question a month or two ago when someone (Berney?) mentioned these. Here is part of a (free) book description from "Understanding stock options" by The Options Clearing Corp. pg 36 Covered Put Writing " A put writer is considered covered if he has a corresponding short stock position. For purposes of cash account transactions, a put writer is also considered to be covered if he deposits cash or equivalents equal to the exercise value of the option with his broker. ..." short position in XYZ and sell (covered) puts is the same tactic as having long position and buying puts. My question is why would someone really need to do this vs. close the short position? Hope this helps, Christopher