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

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To: NateC who wrote (10894)5/24/1999 6:51:00 PM
From: VincentTH  Read Replies (1) of 14162
 
NateC wrote:
so if you bought the 1000 shares it would cost you about $37,310. Let's say you only have $20,000 in your account...although we all know you're worth bezillions.

at 50% margin, you don't have enough to buy the 1000 shares


Sure you do have enough to buy at 50% margin. Remember that the stock is marginable, the option is not.
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