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Technology Stocks : Dell Technologies Inc.

DELL 152.40

-1.5%

Nov 5 3:59 PM EST

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To: nihil who wrote (86977)	12/26/1998 12:56:00 AM
From: PAL	Read Replies (2) of 176387

Hi Nihil: There is margin requirement all right when you sell naked puts. The way my broker tells me is as follows: For stock selling $ 50 or more, the cash requirement per contract is the higher of : a) $ 2,000 b) 30% of the underlying price minus the option price. The underlying price is 100, thus 30% is $ 3,000 minus $ 1,762.50 (proceed of the option per contract) or equal $ 1,237.50. Thus the broker will freeze $ 20,000 cash in the account for the 10 contracts naked put. The broker told me that he seldom got a COMBO trade. His confusion was asking me: do you want Net Debit or Net Credit and How much. I told him I wanted Net Zero. He replied: cannot, must be Net Debit or Credit. I told him to check with the his supervisor. While he put me on hold, the price of CSCO kept dripping so that not only did I get my COMBO, but it ended a Net Credit of 1/4 per share. I have not checked doing a COMBO with Dell. Regards, Paul.

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