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Strategies & Market Trends : Options 201: Beyond Obi-Wan-Kenobe

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To: Bridge Player who wrote (985)4/18/2004 8:27:52 PM
From: tyc:>  Read Replies (1) of 1064
 
Dont forget that the proceeds of the put (i.e the strike price) is to be added to the margin supporting the short put. Logically, it would seem to make no sense that the exercise of a short option would trigger an margin call (IMHO). Logically the requirement should be identical changing only as the price of the underlying stock changes.
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