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To: wlheatmoon who wrote (21823)	2/26/1999 6:09:00 AM
From: accountclosed	Read Replies (1) \| Respond to of 86076

I guess it depends how you define risk. You are cutting off the magnitude of the potential upside with your strategy

To: wlheatmoon who wrote (21823)	2/26/1999 6:21:00 AM
From: accountclosed	Respond to of 86076

if i hold onto the puts a terminology problem here, too. you sold the puts. someone else holds them. you are short puts. and yes being short puts there is definite risk on the downside. but a cap on the upside. so you have risk at both ends. you lose outright if the stock tanks. and you risk missing the big upside. you have a range of returns that is from the low of (option premium minus the strike price of the option --> which means the stock has gone to zero) to the high of (the option premium)