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Non-Tech : Wit Capital - The way of the future? -- Ignore unavailable to you. Want to Upgrade?

To: PAL who wrote (6655)	7/10/1999 12:11:00 AM
From: Mary Baker	Read Replies (1) \| Respond to of 16809

Oh believe me, I am well aware of the risks about shorting stocks! I was just curious as to the mechanics at ETRADE. Not really wanting to get involved in shorting at this point in my investing career... But always appreciate the input from others.

To: PAL who wrote (6655)	7/13/1999 8:43:00 AM
From: AmericanVoter	Respond to of 16809

Paul, you know what puzzles me also... one of the margin requirements for writing a PUT... if the underlying stock keeps dropping, one would have to satisfy margin calls up to 100% of the value of the stock... which does not make sense since you can buy it with 50% equity... i.e. if one has 50% of the value of the stock at strike price, and the PUT gets exercised, available funds would cover it... however, that is not the case... one can end up with 100% value of the stock and the margin would be released when the PUT is exercised... I found out this talking with a broker at MSDW... and when I raised the 50% equity question, he had to check with head office as of why is it so... come to find out that it's one of the margin requirements... best regards amein