Silicon Investor (SI) -- The First Internet Community

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 : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Morgan Drake who wrote (58460)	6/18/1999 1:14:00 AM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 58727

Your logic makes sense but I do not use margin and there are more complexities to these matters than I could even begin to cover here from what I do know. All I can suggest is this thread where Steve Goldman is very honest and prompt in replying to questions like this. His advice has aided myself and others in broker vs customer problems like this in the past. Here's the link exchange2000.com Good Luck and hope you make out OK, Lee

To: Morgan Drake who wrote (58460)	6/18/1999 11:23:00 AM
From: broken_cookie	Respond to of 58727

Morgan, Firstly, I'd like to congratulate you and say I wish I had your problems! :) Secondly, cboe.com is an excellent source for research on option questions and you may speak to them by telephone as well. I have received good info from thewm in the past. It appears that your broker is within his rights: cboe.com If a holder of a physical delivery call option exercises and wishes to purchase the underlying interest on credit, the holder may be required to deposit margin with the holder's brokerage firm. cboe.com cboe.com Also, on a quick read it appears that your were valuing the securities in your account after the exercise to calculate your borrowing power. You should be able to determine your "maximum borrowing power" very quickly. It is explicitly stated on all my margin account statements. By any means, do not fail to give explicit instruction to your broker. Good luck, Rich PS Let me second that recommendation to speak with Steve Goldman.