Roger's 1998 Short Picks Message Board

STOCKTALK

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 : Roger's 1998 Short Picks

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Gotham Guru who wrote (9662)	6/4/1998 11:26:00 PM
From: Gotham Guru	Read Replies (1) of 18691

>> Instigator, most brokerages will allow you to sell naked calls and puts. One just has to have enough margin to cover the cost of exercising the option, and usually another $20G on top of that. So... if I sell 5 naked Dell puts @ 80 I would have to have 40G (for the 500 shares put to me @ 80, and another 20G of margin sitting in my account. Dave << thinking out loud, if i have 40k in cash in my acct and sell 5 dell puts at 80 , what is the reason i need another 50% or 20k in margin-the most that can be put to me is 500 shares at 80 or 40k- do you know the explanation for this(illogical to me) margin requiremint? TIA Instigator

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next