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Technology Stocks : CMGI What is the latest news on this stock?

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To: AmericanVoter who wrote (8179)5/12/1999 9:42:00 PM
From: kcmike   of 19700
 
Amein, here's another 2 cents worth ...

Schwab does a pretty good job with naked puts .. they only require 10% of the underlying stock value, plus the premium, if you have a minimum 25K equity. You can use margin for the requirement, if it is the "cash available" that you could borrow. You are right about the premium, can't use it until the position is closed.

As far as covered calls, that is actually a very conservative means of generating cash flow, if you are willing to lock in profits and possibly being forced to sell the stock. With some stocks you can actually get your basis at or below zero with consistently selling out of the money covered calls that don't get called.

Mike

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