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Strategies & Market Trends : Options
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To: taxman who wrote (584)1/3/2000 4:47:00 PM
From: codawg  Read Replies (1) of 8096
 
Hi Taxman. Recently, I had a rather large in the money position in MSFT options that I wasn't able to sell at the close on the Friday of expiration. I had nowhere near enough cash in the account to cover the margin requirements. I talked to Schwab and had no problem exercising the options and immediately putting my account into margin debit. The amount they wanted from me was the amount to bring the ACCOUNT EQUITY to 50%. I would not have had to put up any cash if the underlying were double the strike because this would have made my equity 50%. I'm surprised by Dreyfus and Fidelity's position.

Incidentally, Schwab let me work the order the following Monday rather than requiring me to sell at or near the open.

Co
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