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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 173.20-3.3%Nov 6 3:59 PM EST

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To: RoseCampion who wrote (51131)11/19/1999 8:21:00 PM
From: PAL  Read Replies (3) of 152472
 
others can chime in here if they are sure they intimately know the vagaries of their brokerage's margin requirements for puts, and they're radically different than Fidos (in which case I'd love to open an account there).

Rose:

Nobody can explain it better than your post. The formula is generally followed by brokerage houses. Here is my experience:

TD Waterhouse : 25% (instead of 30% for Fido)
Brown & Co : 20%

Minimum requirements:

TD Waterhouse & Brown & Co : the greater of 10% of underlying stock plus premium vs $ 500/contract

No $ 10K kicker.

Networth minimum:

TD Waterhouse 100K
Brown 50K

Comission much lower at Brown than Waterhouse. Real time quotes on option are more reliable at Brown.

___________________________________________________________

If I was a double Quillionaire living in a high-tax state I might want to consider writing LEAPS puts just to get LTCG treatment.

You might want to check with your CPA. All shorts (equity or option) are never considered LTCG regardless how long the time frame.

- Paul -
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