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: RoseCampion who wrote (1754)12/28/1999 10:23:00 PM
From: KFE  Read Replies (1) of 2241
 
Rose,

Nice to see you on the options boards again. They seem to be dying on SI.

It's stupid, really, because a short put has exactly the same risk/reward profile as a covered call - there's no logical reason not to allow it if it's secured by cash or what would be marginable securities

I agree with your statement except for the last two words. Securities cannot be used because what would you do if they decreased in value (despite what most people believe right now is impossible). You would run into over funding problems if you tried to deposit more funds. I believe that most firms don't allow naked cash secured puts in IRA's because of the administrative work involved.

Regards,

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