SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Kevin who wrote (2916)10/2/1997 11:34:00 AM
From: AlienTech   of 120523
 
>>But do I pay margin interest if I sell Jan 30 put? I mean if I hold the stok to Jan 2000?<<

When selling a put you dont buy the stock. You get paid to buy the stock at 30 if the price is less than that at 2000 when it expires. If the price is above 30 you get the $8 which is 30% or so profit for 2 years.
And the margin requirements and intrest on that you need to ask your broker since they are only supposed to make sure you have sufficient funds in your account to buy the stock. This rule is rally strange.. EG you sold the put, The stocks at 100 now, Your cash requirement goes to 100 even though the strike price is 30. Not everyone does this, Schwab holds the money you got from the put and 25% of the strike price as collateral dont know how they do this since this is not the sec rule which they were going to change.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News