How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: jaytee who wrote (12393)	2/23/2000 10:26:00 PM
From: Herm	Read Replies (2) of 14162

The federal SEC law they are claiming is called Free Rider! What you have to do when you make the trade is click the margin account as the payment method. Some of these young broker guys and gals don't think to politely advise the customers. Hey, now get this. DLJ Direct butt heads tagged me twice in four years on that charge. The last time for making $3.000 profit on a no brainer buy/sell in the same day with 10 call contracts. They hit me with the penalty of cash only payments in my account for three months with no three day grace for settlement. It was their mistake! This happened in the days before they had portfolio real-time streaming and my account showed plenty of margin at my finger tips. So, I dipped into it big time. Well, the numbers were wrong because they did not update my other settlements on time. I told them how can they freeze my account when I used margin to make the purchases and they spotted me the credit line which was backed up by my credit history and the value of my portfolio! In short, I got away with that line once and the second time they nailed me. No big deal! I still wrote covered calls to generate profits on those same stocks for the three months. Don't consider DLJ Direct! They are overpriced and now if you have under one million dollars they treat you like dirt. Heck! It's the little guys that kept them in business all these years when Prodigy was their big partner. I was able to do my banking and stock trading in one place. That was the only reason I started with them many years ago. I have been looking at a few other.

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