How To Write Covered Calls - An Ongoing Real Case Study! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: VincentTH who wrote (8193)	8/11/1998 7:10:00 PM
From: mc	Read Replies (2) of 14162

Yep, it is a taxable margin account and the puts were trading at 7/8 x 1 1/8. The underlying stock was 4 11/16 and the strike price of the puts was 5. They told me it didn't matter that the maximum exposure was $500 per contract. They still require a minimum $25,000 equity in the account to enter into naked option positions even if I only wanted to sell one lousy put. I thought that was a bit ridiculous, but then this is the first time I've tried sell puts to enter a position so I have no basis from which to judge if this is a standard requirement from brokers or if my broker is just an idiot. It looks like the idiot call is the correct one. Thanks, Gary

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next