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To: Mr. Aloha who wrote (112048)	3/25/1999 12:13:00 AM
From: edamo	Respond to of 176387

mr aloha...well "put"...it's getting late! your input reinforces the premise that options should be only used as an investment tool to enhance an already healthy portfolio... puts or calls are not magical...they are useless unless you are intimate with the underlying.. the leap products give the time element to ride out any bear market.. but if the underlying has died...you still have the ability to lessen the pain and shift the risk, as in cover the losing position with a leap from a more stellar performer. i repeat my basic rules... 1)always have the capacity in cash/margin to accept the assignment 2)only sell puts in that which you want to own by not violating the above...you will maintain discipline...good luck, ed a.

To: Mr. Aloha who wrote (112048)	3/25/1999 9:16:00 AM
From: Mike Gordon	Read Replies (1) \| Respond to of 176387

Ref: "Since the gains from selling puts are always taxed as short-term capital gains, this can be a more useful strategy in an IRA, if you have a broker who lets you do that. In an IRA, you need to be covered with cash (yet another version of "covered put"), so you can't get overextended." Mr. Aloha: I've spoken to several brokers which advised that selling puts in an IRA account is not allowed. The reason being that all tax deferred accounts are not eligible for margin and therefore will not allow short puts (sale of puts). I contend that margin is not required if cash equaling the strike price of the put is available in the account. (Selling the put against cash) Does anyone know of a broker who allows the sale of puts, when supported by cash, in a tax-deferred account?