How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: mc who wrote (8192)	8/11/1998 5:05:00 PM
From: VincentTH	Read Replies (2) of 14162

Gary, You wrote: They said the only thing they will consider as covering a put is an equivalent short position in the stock. What they told you is correct. This is a naked put regardless of how you come up with to satisfy the margin requirement (cash secured or securities). The only point you can contest is the margin requirement itself. Since you did not specify how many put options and at what strikes they are, it is hard to come up with the margin requirement for your naked puts. One more thing. Is this in a taxable account? I assume you know that there cannot be naked puts in an IRA accounts, although some broker will allow you to buy long term bond to satisfy margin requirements in an IRA account. Greg Higgins, a regular on this thread, posted one such broker here last year, but unfortunately you can't search since it is too old (about Oct last year?)

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