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Strategies & Market Trends : Options

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To: Jill who wrote (7570)5/5/2000 4:23:00 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.>>

<< I'm not sure where the confusion is, I hope I can clarify, once more: when I've sold puts and the premiums have deflated to under a buck, I'll nearly
always buy them to close. Freeing up margin capacity--sometimes significant--for other purposes.

SOmetimes I'll also just trade them--buy them back for 50% less.

Or I should say--I did so in the past. I'm less enamored of the put selling strategy now. >>

I have copied both the part of your prior post that I am asking about, as well as the complete text of the post to which I am responding now.

My question is a simple one: What did you mean by the statement: "it may not always be incremental in one's account"? Neither of your last two answers have addressed that question.

BP
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