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Non-Tech : The Critical Investing Workshop
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To: Jimbo who wrote (354)10/21/1999 8:14:00 PM
From: Voltaire  Read Replies (2) of 35685
 
Jimbo,

I am never concerned about a margin call for me or any of the people I invest for because rather than give my broker more cash out of our pocket, I simply write calls, give them their few dollars and buy more stock with the House's money. I would only do this with quality stocks that I am 99% sure are going rebound. I have just seen so many people give up stock they wanted to keep because they had no more discretionary cash. Hell just sell a leap for say $60 per share and on a thousand shares you might have to give the broker $10,000 in margin leaving you$50,000 for more QCOM. Not only that but you are picking up shares at a cheaper price and the whole kicker here is the leverage you are creating.

No one should ever do this unless they have an understanding of call writing and the consequences of margin.

Voltaire
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