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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: His Pinkness who wrote (112021)3/25/1999 1:59:00 AM
From: Don Martini  Read Replies (1) of 176387
 
Pink, Think about Preferred for reasonable options.
They're slick & quick, low commissions. Here's the formula for maintenance requirements [which you referred to as "margin"]:

At the-money [option strike = market price]: 20% of market

In-the-money [you're winning] DEDUCT $1/share off the 20% down to a floor of 10% of the market price.

Out-of-the-money [your losing] ADD $1 for each dollar you're behind.

EXAMPLES, assuming market price is $100:
110 put, 20% of 100 = 20 + 10 = 30.00
90 put, 20% of 100 = 20 - 10 = 10.00

The broker holds the premium until the option is closed or expires, but you get interest on that money. I enjoy the way you can drop down an option chart in a trice and trade right off the chart at Preferred. Your maintenance requirement is updated daily too, and you can read it on one of their screens.
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