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To: Gottfried who wrote (7302)	12/11/2003 7:42:30 PM
From: Sarmad Y. Hermiz	Read Replies (1) of 13403

OT >> suppose if I sell one contract of $20 puts, I'll have to keep $2,000 cash in my account? Gottfried, if it is a margin acct, you only need to keep 50% - or possibly only the 30% needed to maintain a position. In my opinion, this is one of two "good" uses of a margin acct. Presumably you'd get the shares cheap. And with an extra discount, too. The other good use of a margin acct is that it allows you to sell then re-buy within the settlement period. Whereas a cash acct does not allow re-use of funds until they are settled a few days later. Sarmad

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