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Strategies & Market Trends : Tech Stock Options

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To: tony sidhu who wrote (48355)7/24/1998 10:44:00 AM
From: ViperChick Secret Agent 006.9  Read Replies (1) of 58727
 
well
there are different strategies you could use here...

a horizontal time spread
would be same strike different month

so pick your month

lets say PFE ran away from you
you bought at 114
you sell a call at 120
that is 6 points for the stock and whatever you get for selling the call...and you let them call your stock....

and then you still have Dec calls...

I just used 120 as an example in case you sold your stock..the position would still be covered because of your Dec calls...and you probably control more stock via the option than you do long the stock....(just an assumption)

so there should be minimal margin requirement...some brokers require so much in your account EVEN if it is the same strike on a horizontal time spread...

if you dont follow me ask a specific question...I write in a free flow type of thinking and I jump around
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