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Strategies & Market Trends : Option Strategies

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To: Elroy who wrote (2518)7/22/2023 3:09:10 PM
From: robert b furman   of 2591
 
My understanding of the trade is I can sell short a put for a premium that goes into my account like it is cash.

I can make that trade as long as the cash which collateralizes the trade is in my account.

That's with Trade station, IAT, and TDA.

Now if you have no cash balance, and carry a margin loan in your account, I do not know, as I never do that.

When I sell a put, and have enough cash in my account to collateralize the trade if assigned, it never costs me a penny and adds the cash from the sale less some trade fees and is commission free.

I think the best answer would come from your broker as I do not know the status of your account's cash.

Bob
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