Intel Corporation (INTC) Message Board

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Technology Stocks : Intel Corporation (INTC)

INTC 37.51

-0.8%

Dec 15 3:59 PM EST

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To: Amy J who wrote (123626)	12/22/2000 2:19:18 PM
From: GVTucker	Read Replies (2) of 186894

Margining stock options is crazy. It is particularly crazy when it is the majority of your net worth. If a person gets a margin call, that person ought to do two things: first, sell enough stock to get rid of the call. Don't put in cash. If you got a margin call in the first place, it is because you made a mistake. Putting cash into the account doesn't cure the mistake; selling stock does. Next, over the following three days, sell an amount of stock equal to what you just sold to meet the margin. Again, it comes down to admitting to yourself that you made a mistake. Just meeting margin requirements leaves you vulnerable to having to do the same thing again, in less than ideal selling conditions. Once you've done those two things, go back and run the portfolio the way you know best, cognizant of the lesson learned. Do not try and "get the money back" that you lost. That will entail more risk than you probably should incur.

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