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Strategies & Market Trends : Options
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To: Jill who wrote (1555)1/24/2000 12:42:00 AM
From: Jeffry K. Smith  Read Replies (1) of 8096
 
A correction - selling covered calls DOES affect your buying power - it *increases* it - IF the sale of calls is done after the purchase of your stock.

If you sell the calls (as effectively a spread) when you buy your stock, then there is no effect which is traceable to the option sale - the purchase/option sale is net debited against your available margin.

Selling calls is like depositing money into your account.

Best,
Jeff Smith
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