long on foolishness...for the fourth and final time...
you buy a call, the total amount of cash used for purchase is no longer marginable!
you sell a put, and only about 20% of the total amount is against your margin!
purchased call goes up, purchased call goes down, and you still don't have any margin capacity against it
sold put goes down, margin capacity is released, put goes up and margin capacity is decreased.
if you have $1m and buy all calls....guess what you have 0 margin capacity.
if you have $1m and sell puts with an assignable value of $1m, you have about 800k margin capacity left.....perhaps more depending on the total of the prems received
can't make it any clearer, just like the good folks on the dell thread tried....can't overcome your inability to grasp a basic concept...especially for an advanced options strategist as you!
if you would like to dispute, then do so factually...you are quite amusing, not even your 10500% return can take your foot out of your mouth....
you have four years experience, in any given month how many put sales do you position? or are you one of these folks that speaks chapter and verse of that which they can't do?
chuzz,ian,rude,trcm,drew,gv, all tried to point out the error of your thought process on the dell thread......can they all be wrong????????? |
