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To: Les H who wrote (4827)	1/16/2003 11:58:47 PM
From: yu	Read Replies (2) of 29595

I sold some naked options contracts a few days ago. Today I found Fidelity took a large portion of my cash position into the margin credit account for this trade. I called to ask what is this about. To my surprise, 1) They proceeds from selling the naked option will not be credited to my account until I close the position. 2) I will not earn interest from the money I got from selling the options. 3) The large chunk of money they took into the "margin credit" will not go back to my money market until the position is closed and will not earn interest for me either. I have never noticed this even though I have been selling naked calls and puts for years. Is this common? Does anyone know a brokerage that would pay interest to the money you get from selling naked option? The guy who bought the naked option I sold will have less cash in his account and earn less interest. I will earn much less interest because a lot of my money is taken for the naked option margin requirements. Both of us get screwed by the brokerage houses. I mean I do not mind to keep enough cash in the account to maintain the naked option positions. But not paying interest to me is not making any sense.

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