CMGI What is the latest news on this stock? Message Board

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Technology Stocks : CMGI What is the latest news on this stock?

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To: Eric who wrote (4974)	2/25/1999 9:13:00 PM
From: Kayaker	Read Replies (1) of 19700

what is the capital requirement for selling puts? say if you sell 10 contracts of Jun 110 p, do you need to have $110,000 in your account? The capital requirement varies from broker to broker. It's much less than 100% but changes as the stock/put price changes. I'm a light sleeper, so I don't sell puts unless I have 100% cash to back it up. If the stock drops, you can always "roll out", ie, by buying back your put and selling a later month. Selling puts is growing on me in these choppy markets. By selling the June 110 puts for 24.5, I either get assigned CMGI shares for a net price of 85.5, or they expire and I keep the premium for a 22.2% return in only 3 months. I'm not sure which I prefer. :-)

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