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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 160.55-4.8%Dec 12 3:59 PM EST
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To: sergio who wrote (9314)1/18/2001 1:41:45 PM
From: Ian@SI  Read Replies (1) of 10921
 
I think in part it depends upon how the brokers are regulated which varies by countries.

Writing naked puts is a strategy which brokers usually are required to restrict to
sophisticated investors. And the most objective measure that their regulator
will accept is how much money the customer has.

IMO, it's irrelevant or nearly so. But I'm neither a regulator nor a broker.

Other requirements are that your investment objective be aggressive, short term, speculative or
whatever the highest risk category is on their "know your customer" survey; as well as claiming
to have multiple years of options experience; plus assuring them that you fully understand that
you can get an early assignment at any moment prior to expiration.

Ask your broker what their specific requirements are; and what you need to get the approval.
At TWE, I've trading authority for an account which is under $100K and for which I've not provided
any guarantee. On my first attempt to write a naked PUT on that account, the trader advised that the account wasn't approved for writing options. after a short discussion, he let the transaction go through, and had the account permissions changed without any further paperwork being required by the account holder.

Long story, but there does seem to be some flexibility at least at Waterhouse.
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