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Pastimes : Tidbits

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To: Didi who wrote (114)6/13/2000 1:02:00 PM
From: AmericanVoter  Read Replies (1) of 1115
 
"Minimum Margin on Short, Uncovered Puts. The minimum requirement is now calculated using the exercise price of the put rather than the current market value of the underlying."

this is news to me... in effect, buying the underlying will tie up less funds than selling deep ITM LEAP puts...!!! another way of saying only professional brokers are allowed to sell PUTs since most of the time they have their own regulations...

regards
amein
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