How To Write Covered Calls - An Ongoing Real Case Study! Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Woz who wrote (10083)	3/26/1999 4:39:00 PM
From: VincentTH	Read Replies (1) of 14162

Woz, Re: Margin Requirement for naked puts. At Waterhouse, the m.r. for naked put is: - The greater of $25,000 and the initial requirement. The initial requirement is normally about option premium + 25% of stock price plus $500 per contract. This is usually much less than the exercise price. - if the market value of the naked put is < $25,000, the exercise value of the put. Almost all of my N.P. fall into this category. The short side of a put/call spread can be placed online, except that they must be approved manually by a broker, a somewhat frustrating process that takes 3-15 mins. But that beats talking to a broker after being put on hold for 1/2 hour, so I am not complaining. Now, if only Waterhouse would reduce the commissions for options that do not require broker approval, that would be great! As for risk, the risk of selling a naked put is no greater than buying the underlying stock and sell the call, because both have the same characteristics. Now, the same is not true for naked calls. //V

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next