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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: Red Scouser who wrote (46232)	1/30/1999 12:32:00 AM
From: Night Writer	Read Replies (1) \| Respond to of 97611

Red, Naked options are options sold with no stock to back then up. The term is more appropriately used when selling calls without owning the stock. One is then exposed to the risk (naked)of having to buy the stock at the open market price if the shares are called by the call owner. The call owner would pay the strike price, which would be lower then the market price. It can be considered redundant when used with puts, other then the fact that I am exposed to the risk of having to buy the stock at the strike price with no protection. There are various ways one can protect the position, but not by owning the stock. NW