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Technology Stocks : Dell Technologies Inc.
DELL 133.92-4.9%Nov 13 3:59 PM EST

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To: PAL who wrote (109343)3/15/1999 9:27:00 AM
From: David R. Colby  Read Replies (1) of 176387
 
Paul,
I guess we are all interested in the same topic: margin costs on naked puts. I have been trying to get a straight answer as to costs out of my broker (VG Brokerage Services) and so far have the following.

Margined amount is greatest of the 4 methods:
Method A - $2,000 per contract
Method B - Premium, plus 15% of market value
Method C - Premium, plus 30% of market value, minus out of money
Method D - Minimum of $10,000
After all this I am told that "certain" LEAP positions may have additional requirements.I am still scratching my head and calculating.
I would be interested in seeing the risks of naked puts with the real example you mentioned.

dave colby
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