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Non-Tech : The Critical Investing Workshop

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To: Voltaire who wrote (7835)3/16/2000 7:04:00 PM
From: Jim Willie CB   of 35685
 
I believe as options vary in value daily, zero margin consequences

been there many times
options can be purchased with margin money
but once purchased, impact to margin is done and over
whatever you paid for the margined option, that amount adds to margin balance
you essentially borrowed margin cash to purchase option

but afterwards, whether the option rises huge, or declines to nothing,
the change has no consequence on margin percent and maintainence levels for the account

they split shares to the margin ledger
they split options to the cash ledger
it is like you have two separate stock accounts

I am 95% of this separation and margin implication
/ Jim
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