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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (870)	4/29/1999 9:25:00 AM
From: Marconi	Respond to of 10293

Hello Mr. Wexler: ZONA-naked calls I agree with your comments. I probably write 1 naked call position for every 20 options positions I take. I also enter naked option positions after watching how the option trading goes for a significant period of time; best to have witnessed the last few expirations weeks to get a sense of the options MM's activity. I keenly watch for the first opening to close a naked call; preferably at least several days before expiration if there is manipulation going on. ZONA appears to be a manipulated stock to me. One protective measure on a nasty spike upward that is really out of line the day or week of expiration is to buy the near money puts, exercise them (which requires stock to be available to borrow) and clear them the next week when the scalpers are at risk holding the junk, and the stock price settles back down. With ZONA I feel reasonably certain they are unlikely to get much beyond 30. Generally writing naked calls is attractive during a nasty spike up. The background homework on the options needs to be done diligently in preparation for the out of line extremums. I have only done junk stocks this way--those 'going out of concern', not a going concern. Best regards, m