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Technology Stocks : Dell Technologies Inc.
DELL 129.94-6.2%Dec 12 3:59 PM EST

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To: PAL who wrote (118299)4/17/1999 10:04:00 PM
From: freeus  Read Replies (3) of 176387
 
re selling puts and margin calls
This is the main problem, as I now see after receiving a "false" margin call on Thursday by Fidelity.
And it is strange to me: when a stock is selling well above the strike price of your contract, and you have sold the contract, why keep anything back except the money to purchase the contract back: what investor in his/her right mind would force an execution of a stock that is selling for more in the market? And if that silly investor did, who cares, you (or the broker if it makes them happier) could turn right around and sell the stock for more, thereby making the brokerage happy and giving you (the contract seller) a profit to trade on????
Anyway since I like margin, and just was unable to pay my IRS taxes due because I no longer had the cash out power I was supposed to have in my account due to this "false" margin call, I think I am not so excited about selling puts anymore. It was nice easy money but I'd rather have the cash/margin cash available.
Any comments?
Freeus
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