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Strategies & Market Trends : Tech Stock Options
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To: Michael Ohlendorf who wrote (58342)2/23/1999 9:12:00 AM
From: Soumen Barua   of 58727
 
I assume I do not have to buy the stock since this would require a lot of capital one would always have to have available considering that a few contracts already equals a lot of stocks

That is exactly what you need to have if you want to write uncovered calls and puts. Either you write covered calls and puts or have equivalent cash deposit so that you can write uncovered. Usually, the capital requirements for writing uncovered is higher than writing covered. I might be wrong. I hope that helps.
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