SI
SI
discoversearch

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 : Options for Newbies -(Help Me Obi-Wan-Kenobe)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Mauricio Breternitz who wrote (1469)6/25/1999 10:03:00 PM
From: Jon Tara  Read Replies (1) of 2241
 
Mauricio, you will some considerable cash in your account to write naked calls. Preferred wants $25,000. Most brokers want $100,000.

You won't be able to write options against your options, by depositing them somewhere, etc. Because they AREN'T shares, but options, they can't possibly "cover" the calls you want to write.

IF you could do this, the best you could do is a spread transaction, which would have lower margin and initial cash requirements than naked calls. But you still couldn't do it, because these aren't exchange-traded options.

Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News