CMGI What is the latest news on this stock? Message Board

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

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To: PAL who wrote (11732)	7/14/1999 11:46:00 AM
From: AmericanVoter	Read Replies (1) of 19700

Paul, the margin maintenance requirement is basically 30% of the stock at strike + the PUT premium... SO, if the PUT premium becomes higher, the margin maintenance requirement becomes higher... example: selling Sep99 100 PUT @ 8 the margin maintenance requirement is 8 + 30 = 38 / share now, if the Sep99 PUT premium becomes 10 the margin maintenance requirement will become 10 + 30 = 40 / share and that is regardless of where the stock price is... it is a one-to-one correspondence with the change in the PUT premium... which is why one could have more margin than is needed when the PUT is exercised... it's a house rule though, not a Federal Reserve or NYSE / CBOE rule... so, some brokerage houses may do it differently... best regards amein

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