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Strategies & Market Trends : The Covered Calls for Dummies Thread
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To: alanrs who wrote (5147)4/17/2011 3:21:12 PM
From: lml   of 5205
 
I typically don't rely on margin when writing puts,

I agree. I do most of my trading in my retirement accounts, which require cash collateral; no margin. Benefit of using a retirement account to trade options is that I don't worry about tax implications, reporting, etc.. Makes life simpler.

Trading in a retirement account forces the discipline of never being on margin. It's not for the more aggressive trader, who desires to play a bigger game with his/her money, but it's the appropriate rule to either adhere to, or be bound by, the more prudent conservative trader. JMO.

Being short puts on margin is a very dangerous & potentially costly game. Been there in 2001 & learned my lesson.
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