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Strategies & Market Trends : Options

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To: Jill who wrote (7549)5/5/2000 3:43:00 PM
From: Bridge Player  Read Replies (1) of 8096
 
<<it depends how many open positions you have, how much margin that frees up. It may not always be incremental in one's account.>>

If an account has a naked call on the same underlying stock at a strike closer to the current market price than the put being bought to close (the broker should require margin only on the closer of the two positions) then I could understand.

With that exception, it seems to me that when a short naked put is closed, that would always release additional margin in the account, regardless of any other open positions. Are there any other circumstances you are aware of where that would not be the case?

BP
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