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

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: SecularBull who wrote (6100)4/6/2000 11:25:00 AM
From: edamo  Read Replies (2) of 8096
 
lof..."buying calls does not burden margin like selling puts does"

didn't we(collectively) have this very same discussion on the dell thread a while back?.........yout statement wasn't valid then...and nothing has changed...

calls are not marginable, so any buy reduces the cash/margin capacity....puts marginable at 20%....cash in from premiums increases capacity....

markets never move so fast as repair is not possible....far out expirations always worth more then closer in....

for the sake of the thread and for discussion, what has been your own personal experience and frequency of using repair strategies? if you are conversant in repairs you would grasp the point being made by paul.

any fully leveraged account be in rife with short puts, long calls, or chunky style peanut butter would have a problem..........it's not what you are holding, it's the "fully leveraged" that is the culprit
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext