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To: Dennis who wrote (13947)	1/23/1999 3:16:00 PM
From: Jerry Olson	Read Replies (1) \| Respond to of 64865

Dennis you do not own the stock(but you could)...you sell the put to another party the buyer..they have the option, to A. sell the put if the stock goes down, with no trouble to you, or B. they can excersize their "option" buy making you buy those shares back...or C. loose their option and you keep the premy paid...of course if the stock goes up over your strike price..then they are history... in other words...you must have the funds to buy the shares IF they are put to you..if not!!! you keep ALL the money...PERIOD...

To: Dennis who wrote (13947)	1/23/1999 6:14:00 PM
From: SFW	Read Replies (3) \| Respond to of 64865

Dennis, Excuse the interjection, but if I may add a word of caution here. Trading options of any kind can be risky. Selling naked puts is one of the more risky option trades; selling naked calls being riskier. There are some good books out there on options and option trading strategies(check at your local business library or Amazon.com). Read and study well before you engage in option trading. Your broker will likely require that you have a certain minimum account balance and a certain level of experience with trading stocks and writing covered calls before the house allows to write other types of options. To summarize, writing options can make you lots of money or wipe you out fairly quickly. Don't get me wrong, IMO options are an essential part of a stock trader's arsenal. They allow you to fix a bad stock position and can provide some return while you wait for your stocks to move. However, you must fully understand the risks that you are assuming before writing options.