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Strategies & Market Trends : Tech Stock Options

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To: Judy who wrote (21885)	9/4/1997 2:34:00 AM
From: tfox	of 58727

Hi - I'm relatively new to selling puts and calls and think they're a great way to hedge and profit from market movements in both directions. (eg after tommorrow's expected drift down on AMD would be a good time to sell puts slightly out of the money) What limits me are the monetary brokerage requirements to cover the risk - about 25% of the price of the underlying stock for each contract, for both puts and calls (eg assume AMD at 36 then: divide by 4 times 100 = $900 per contract) Does this vary from brokerage to brokerage? I'd appreciate hearing what your experience is regarding this. Does the money (eg $900) have to be in cash or stock or can it be in other options, in or out of the money. Thanks. BTW, SGI is having an analysts meeting this Friday and I'm expecting them to have another big quarter - Nov calls bought before Friday or before their next earnings announcement should do well, in my humble opinion.

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